Leases We have operating and finance leases for offices, terrestrial repeaters, data centers and certain equipment. Our leases have remaining lease terms of less than 1 year to 17 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. We elected the practical expedient to account for the lease and non-lease components as a single component. Additionally, we elected the practical expedient to not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date.
During the years ended December 31, 2025, 2024 and 2023, we ceased using certain leased locations and recorded an impairment charge of $3, $8 and $12, respectively, to write down the carrying value of the right-of-use assets for these locations to their estimated fair values. Refer to Note 4 for additional information.
The components of lease expense were as follows:
| | | | | | | | | | | | | | | |
| | | For the Years Ended December 31, |
| | | | | 2025 | | 2024 |
| Operating lease cost | | | | | $ | 56 | | | $ | 61 | |
| Finance lease cost | | | | | 6 | | | 6 | |
| Sublease income | | | | | (3) | | | (3) | |
| Total lease cost | | | | | $ | 59 | | | $ | 64 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | |
| For the Years Ended December 31, | | |
| 2025 | | 2024 | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 68 | | | $ | 62 | | | |
| Financing cash flows from finance leases | $ | 6 | | | $ | 5 | | | |
| | | | | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | — | | | $ | 16 | | | |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Operating Leases | | | |
| Operating lease right-of-use assets | $ | 223 | | | $ | 277 | |
| | | |
| Operating lease current liabilities | 47 | | | 48 | |
| Operating lease liabilities | 229 | | | 291 | |
| Total operating lease liabilities | $ | 276 | | | $ | 339 | |
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Finance Leases | | | |
| Property and equipment, gross | $ | 30 | | | $ | 35 | |
| Accumulated depreciation | (25) | | | (19) | |
| Property and equipment, net | $ | 5 | | | $ | 16 | |
| | | |
| Current maturities of debt | $ | 4 | | | $ | 6 | |
| Long-term debt | 1 | | | 5 | |
| Total finance lease liabilities | $ | 5 | | | $ | 11 | |
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted Average Remaining Lease Term | | | |
| Operating leases | 7 years | | 8 years |
| Finance leases | 1 year | | 2 years |
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted Average Discount Rate | | | |
| Operating leases | 5.2 | % | | 5.2 | % |
| Finance leases | 2.4 | % | | 2.4 | % |
Maturities of lease liabilities were as follows:
| | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| Year ending December 31, | | | |
| 2025 | $ | 59 | | | $ | 4 | |
| 2026 | 60 | | | 1 | |
| 2027 | 53 | | | — | |
| 2028 | 50 | | | — | |
| 2029 | 20 | | | — | |
| Thereafter | 94 | | | — | |
| Total future minimum lease payments | 336 | | | 5 | |
| Less imputed interest | (60) | | | — | |
| Total | $ | 276 | | | $ | 5 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.