Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

General

We enter into operating and finance leases for network equipment, real estate, mobile site sharing and vehicles. We provide residual value guarantees on certain of our vehicle leases.

Lease Balances

A summary of our ROU assets and lease liabilities is set forth below:

	March 31, 2024		December 31, 2023
	in millions
ROU assets:
Finance leases (a)	$	56.1	$	57.9
Operating leases (b)	2,225.6		1,761.8
Total ROU assets	$	2,281.7	$	1,819.7
Lease liabilities:
Finance leases (c)	$	52.3	$	58.0
Operating leases (d)	2,060.9		1,803.9
Total lease liabilities	$	2,113.2	$	1,861.9

_______________

(a)Our finance lease ROU assets are included in property and equipment, net, on our condensed consolidated balance sheets. At March 31, 2024, the weighted average remaining lease term for finance leases was 10.6 years and the weighted average discount rate was 4.9%. During the three months ended March 31, 2024 and 2023, we recorded non-cash additions to our finance lease ROU assets of $0.5 million and $7.3 million, respectively.

(b)At March 31, 2024, the weighted average remaining lease term for operating leases was 9.9 years and the weighted average discount rate was 4.8%. During the three months ended March 31, 2024 and 2023, we recorded non-cash additions to our operating lease ROU assets of $29.4 million and $25.0 million, respectively.

(c)The current and long-term portions of our finance lease liabilities are included within current portion of debt and finance lease obligations and long-term debt and finance lease obligations, respectively, on our condensed consolidated balance sheets.

(d)The current portions of our operating lease liabilities are included within other accrued and current liabilities on our condensed consolidated balance sheets.

A summary of our aggregate lease expense is set forth below: 

	Three months ended March 31,
	2024		2023
	in millions
Finance lease expense:
Depreciation and amortization	$	2.1	$	17.3
Interest expense	0.6		6.2
Total finance lease expense	2.7		23.5
Operating lease expense (a)	62.5		59.3
Short-term lease expense (a)	0.4		1.1
Variable lease expense (b)	0.3		0.4
Total lease expense	$	65.9	$	84.3

_______________

(a)Our operating lease expense and short-term lease expense are included in programming and other direct costs of services, other operating expenses, SG&A expenses and impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations.

(b)Variable lease expense represents payments made to a lessor during the lease term that vary because of a change in circumstance that occurred after the lease commencement date. Variable lease payments are expensed as incurred and are included in other operating expenses in our condensed consolidated statements of operations.

A summary of our cash outflows from operating and finance leases is set forth below: 

	Three months ended March 31,
	2024		2023
	in millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	79.3	$	59.9
Operating cash outflows from finance leases (interest component)	0.6		6.2
Financing cash outflows from finance leases (principal component)	4.0		2.4
Total cash outflows from operating and finance leases	$	83.9	$	68.5

Maturities of our operating and finance lease liabilities as of March 31, 2024 are presented below. Amounts represent U.S. dollar equivalents based on March 31, 2024 exchange rates.

	Operating leases		Finance leases
	in millions
Year ending December 31:
2024 (remainder of year)	$	218.8	$	8.2
2025	255.8		10.1
2026	238.7		7.9
2027	227.8		7.0
2028	219.2		4.4
2029	211.4		3.1
Thereafter	1,488.1		27.1
Total payments	2,859.8		67.8
Less: present value discount	(798.9)		(15.5)
Present value of lease payments	$	2,060.9	$	52.3
Current portion	$	178.2	$	8.9
Long-term portion	$	1,882.7	$	43.4

Leases

Leases

General

We enter into operating and finance leases for network equipment, real estate, mobile site sharing and vehicles. We provide residual value guarantees on certain of our vehicle leases.

Lease Balances

A summary of our ROU assets and lease liabilities is set forth below:

	March 31, 2024		December 31, 2023
	in millions
ROU assets:
Finance leases (a)	$	56.1	$	57.9
Operating leases (b)	2,225.6		1,761.8
Total ROU assets	$	2,281.7	$	1,819.7
Lease liabilities:
Finance leases (c)	$	52.3	$	58.0
Operating leases (d)	2,060.9		1,803.9
Total lease liabilities	$	2,113.2	$	1,861.9

_______________

(a)Our finance lease ROU assets are included in property and equipment, net, on our condensed consolidated balance sheets. At March 31, 2024, the weighted average remaining lease term for finance leases was 10.6 years and the weighted average discount rate was 4.9%. During the three months ended March 31, 2024 and 2023, we recorded non-cash additions to our finance lease ROU assets of $0.5 million and $7.3 million, respectively.

(b)At March 31, 2024, the weighted average remaining lease term for operating leases was 9.9 years and the weighted average discount rate was 4.8%. During the three months ended March 31, 2024 and 2023, we recorded non-cash additions to our operating lease ROU assets of $29.4 million and $25.0 million, respectively.

(c)The current and long-term portions of our finance lease liabilities are included within current portion of debt and finance lease obligations and long-term debt and finance lease obligations, respectively, on our condensed consolidated balance sheets.

(d)The current portions of our operating lease liabilities are included within other accrued and current liabilities on our condensed consolidated balance sheets.

A summary of our aggregate lease expense is set forth below: 

	Three months ended March 31,
	2024		2023
	in millions
Finance lease expense:
Depreciation and amortization	$	2.1	$	17.3
Interest expense	0.6		6.2
Total finance lease expense	2.7		23.5
Operating lease expense (a)	62.5		59.3
Short-term lease expense (a)	0.4		1.1
Variable lease expense (b)	0.3		0.4
Total lease expense	$	65.9	$	84.3

_______________

(a)Our operating lease expense and short-term lease expense are included in programming and other direct costs of services, other operating expenses, SG&A expenses and impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations.

(b)Variable lease expense represents payments made to a lessor during the lease term that vary because of a change in circumstance that occurred after the lease commencement date. Variable lease payments are expensed as incurred and are included in other operating expenses in our condensed consolidated statements of operations.

A summary of our cash outflows from operating and finance leases is set forth below: 

	Three months ended March 31,
	2024		2023
	in millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	79.3	$	59.9
Operating cash outflows from finance leases (interest component)	0.6		6.2
Financing cash outflows from finance leases (principal component)	4.0		2.4
Total cash outflows from operating and finance leases	$	83.9	$	68.5

Maturities of our operating and finance lease liabilities as of March 31, 2024 are presented below. Amounts represent U.S. dollar equivalents based on March 31, 2024 exchange rates.

	Operating leases		Finance leases
	in millions
Year ending December 31:
2024 (remainder of year)	$	218.8	$	8.2
2025	255.8		10.1
2026	238.7		7.9
2027	227.8		7.0
2028	219.2		4.4
2029	211.4		3.1
Thereafter	1,488.1		27.1
Total payments	2,859.8		67.8
Less: present value discount	(798.9)		(15.5)
Present value of lease payments	$	2,060.9	$	52.3
Current portion	$	178.2	$	8.9
Long-term portion	$	1,882.7	$	43.4