LEASES
The Company has operating and finance leases for transponders, office space, studio facilities, software, and other equipment. The Company’s leases were reflected in the Company’s consolidated balance sheets as follows (in millions).
| | | | | | | | | | | | | | | | | |
| | | December 31, |
| | | 2025 | | 2024 |
| Operating Leases | Location on Balance Sheet | | | | |
| Operating lease right-of-use assets | Other noncurrent assets | | $ | 2,749 | | | $ | 2,373 | |
| | | | | |
| Operating lease liabilities (current) | Accrued liabilities | | $ | 285 | | | $ | 307 | |
| Operating lease liabilities (noncurrent) | Other noncurrent liabilities | | 3,226 | | | 2,731 | |
| Total operating lease liabilities | | | $ | 3,511 | | | $ | 3,038 | |
| | | | | |
| Finance Leases | | | | | |
| Finance lease right-of-use assets | Property and equipment, net | | $ | 635 | | | $ | 432 | |
| | | | | |
| Finance lease liabilities (current) | Accrued liabilities | | $ | 149 | | | $ | 107 | |
| Finance lease liabilities (noncurrent) | Other noncurrent liabilities | | 534 | | | 356 | |
| Total finance lease liabilities | | | $ | 683 | | | $ | 463 | |
Supplemental information related to leases was as follows.
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Weighted average remaining lease term (in years): | | | | |
| Operating leases | | 11 | | 11 |
| Finance leases | | 6 | | 6 |
| | | | |
| Weighted average discount rate | | | | |
| Operating leases | | 4.97 | % | | 4.43 | % |
| Finance leases | | 5.46 | % | | 5.11 | % |
The Company’s leases have remaining lease terms of up to 27 years, some of which include multiple options to extend the leases for up to a total of 20 years. Most leases are not cancelable prior to their expiration.
The components of lease cost were as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 407 | | | $ | 441 | | | $ | 540 | |
| | | | | | |
| Finance lease cost: | | | | | | |
| Amortization of right-of-use assets | | $ | 150 | | | $ | 111 | | | $ | 85 | |
| Interest on lease liabilities | | 32 | | | 19 | | | 8 | |
| Total finance lease cost | | $ | 182 | | | $ | 130 | | | $ | 93 | |
| | | | | | |
Variable fees and other(a) | | $ | 29 | | | $ | 44 | | | $ | 74 | |
| Total lease cost | | $ | 618 | | | $ | 615 | | | $ | 707 | |
(a) Includes variable lease payments related to our operating and finance leases and costs of leases with initial terms of less than one year.
Supplemental cash flow information related to leases was as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | (455) | | | $ | (476) | | | $ | (501) | |
| Operating cash flows from finance leases | | $ | (32) | | | $ | (19) | | | $ | (19) | |
| Financing cash flows from finance leases | | $ | (139) | | | $ | (95) | | | $ | (74) | |
| | | | | | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | | |
| Operating leases | | $ | 726 | | | $ | 78 | | | $ | 364 | |
| Finance leases | | $ | 341 | | | $ | 300 | | | $ | 95 | |
Maturities of lease liabilities as of December 31, 2025 were as follows (in millions):
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| 2026 | | $ | 441 | | | $ | 178 | |
| 2027 | | 424 | | | 157 | |
| 2028 | | 419 | | | 123 | |
| 2029 | | 416 | | | 81 | |
| 2030 | | 407 | | | 45 | |
| Thereafter | | 2,594 | | | 224 | |
| Total lease payments | | 4,701 | | | 808 | |
| Less: Imputed interest | | (1,190) | | | (125) | |
| Total | | $ | 3,511 | | | $ | 683 | |
During the year ended December 31, 2025, ROU asset impairment charges were $112 million and were primarily related to impairments of the Company’s Hudson Yards, New York office as a result of recoverability tests performed during the year as subleases for the office were executed. The impairment charges were recorded in impairment and loss on dispositions in the consolidated statements of operations. Sublease income, primarily related to the Hudson Yards, New York office, was $55 million for the year ended December 31, 2025 and was not material for the years ended December 31, 2024 and 2023.
As of December 31, 2025, the Company’s total minimum lease payments for additional leases that have not yet commenced were not material.