Leases

9 Months Ended

Sep. 30, 2023

Leases

Leases

8.Leases

We enter into non-cancelable operating and finance leases for, among other things, communication towers, satellites, 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 15 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 first quarter of 2022, our Anik F3 and Nimiq 5 satellites were accounted for as finance leases. However, during April 2022, we extended the Anik F3 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.

The components of lease expense were as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
	(In thousands)
Operating lease cost (1)	$	130,288	$	91,447	$	364,622	$	229,359
Short-term lease cost (2)		2,686		3,281		8,107		10,220
Finance lease cost:
Amortization of right-of-use assets		13,316		6,048		53,505		21,989
Interest on lease liabilities		3,521		3,926		10,915		9,084
Total finance lease cost		16,837		9,974		64,420		31,073
Total lease costs	$	149,811	$	104,702	$	437,149	$	270,652

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

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

Supplemental cash flow information related to leases was as follows:
​

	For the Nine Months Ended
	September 30,
	2023		2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	233,135	$	106,036
Operating cash flows from finance leases	$	9,778	$	8,721
Financing cash flows from finance leases	$	37,936	$	34,266
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	559,539	$	1,184,791
Finance leases	$	53,771	$	51,661

Supplemental balance sheet information related to leases was as follows:

	As of
	September 30,		December 31,
	2023		2022
	(In thousands)
Operating Leases:
Operating lease assets	$	3,052,636	$	2,687,522
Other current liabilities	$	274,217	$	194,030
Operating lease liabilities		3,096,308		2,687,883
Total operating lease liabilities	$	3,370,525	$	2,881,913
Finance Leases:
Property and equipment, gross	$	465,549	$	411,778
Accumulated depreciation		(357,328)		(303,802)
Property and equipment, net	$	108,221	$	107,976
Other current liabilities	$	61,875	$	48,066
Other long-term liabilities		77,314		75,287
Total finance lease liabilities	$	139,189	$	123,353
Weighted Average Remaining Lease Term:
Operating leases		11.1 years		11.8 years
Finance leases		2.4 years		2.7 years
Weighted Average Discount Rate:
Operating leases		8.2%		7.3%
Finance leases		9.7%		9.8%

Maturities of lease liabilities as of September 30, 2023 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2023 (remaining three months)	$	91,796	$	21,949	$	113,745
2024		392,168		63,331		455,499
2025		430,568		35,392		465,960
2026		462,804		36,588		499,392
2027		465,517		2,574		468,091
Thereafter		3,438,681		—		3,438,681
Total lease payments		5,281,534		159,834		5,441,368
Less: Imputed interest		(1,911,009)		(20,645)		(1,931,654)
Total		3,370,525		139,189		3,509,714
Less: Current portion		(274,217)		(61,875)		(336,092)
Long-term portion of lease obligations	$	3,096,308	$	77,314	$	3,173,622