Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

8.Leases

Lessee Accounting

We enter into non-cancelable operating and finance leases for, among other things, communication towers, satellites, satellite-related ground infrastructure, data centers, office space, dark fiber and transport equipment, warehouses and distribution centers, vehicles and other equipment.

Substantially all of our leases have remaining lease terms from one to 13 years, with a weighted average remaining lease term of 1.7 to 9.7 years, some of which include renewal options, and some of which include options to terminate the leases within one year. For certain arrangements (generally communication towers), the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise.

Through the third quarter of 2024, our Nimiq 5 satellite was accounted for as finance lease within our Pay-TV segment. However, during October 2024, we extended the Nimiq 5 lease and as a result it is currently accounted for as an operating lease. Substantially all of our remaining leases are accounted for as operating leases, including our Anik F3 satellite lease.

The components of lease expense were as follows:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Operating lease cost (1)	$	616,519	$	516,920	$	332,385
Short-term lease cost (2)		24,308		10,521		13,328
Finance lease cost: (3)
Amortization of right-of-use assets		47,610		66,966		28,037
Interest on lease liabilities		8,799		14,090		12,145
Total finance lease cost		56,409		81,056		40,182
Total lease costs	$	697,236	$	608,497	$	385,895

(1) The increase in operating lease cost is primarily related to communication tower leases.

(2) Leases that have terms of 12 months or less.

(3) The increase in finance lease cost for the year ended December 31, 2023 is primarily related to equipment for our 5G Network Deployment.

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	474,964	$	346,091	$	163,320
Operating cash flows from finance leases	$	9,094	$	13,400	$	11,053
Financing cash flows from finance leases	$	56,459	$	53,467	$	42,617
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	522,747	$	741,017	$	1,398,050
Finance leases	$	—	$	53,771	$	66,312

Supplemental balance sheet information related to leases was as follows:

	As of December 31,
	2024		2023
	(In thousands)
Operating Leases:
Operating lease assets	$	3,134,938	$	2,934,862
Other current liabilities	$	510,697	$	301,172
Operating lease liabilities		3,089,950		2,992,863
Total operating lease liabilities	$	3,600,647	$	3,294,035
Finance Leases:
Property and equipment, gross	$	121,102	$	465,549
Accumulated depreciation		(73,419)		(370,768)
Property and equipment, net	$	47,683	$	94,781
Other current liabilities	$	30,381	$	56,459
Other long-term liabilities		36,818		67,199
Total finance lease liabilities	$	67,199	$	123,658
Weighted Average Remaining Lease Term:
Operating leases		9.7 years		10.7 years
Finance leases		1.7 years		2.2 years
Weighted Average Discount Rate:
Operating leases		10.3%		9.5%
Finance leases		9.3%		9.7%

Maturities of lease liabilities as of December 31, 2024 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2025	$	545,077	$	35,392	$	580,469
2026		577,160		36,588		613,748
2027		579,203		2,574		581,777
2028		536,551		—		536,551
2029		523,216		—		523,216
Thereafter		2,923,077		—		2,923,077
Total lease payments		5,684,284		74,554		5,758,838
Less: Imputed interest		(2,083,637)		(7,355)		(2,090,992)
Total		3,600,647		67,199		3,667,846
Less: Current portion		(510,697)		(30,381)		(541,078)
Long-term portion of lease obligations	$	3,089,950	$	36,818	$	3,126,768