Leases

9 Months Ended

Sep. 30, 2021

Note 12 – Leases

Lessee

We are a lessee for non-cancelable operating and financing leases for cell sites, switch sites, retail stores, network equipment and office facilities with contractual terms that generally extend through 2035. Additionally, we lease dark fiber through non-cancelable operating leases with contractual terms that generally extend through 2041. The majority of cell site leases have a non-cancelable term of five to 15 years with several renewal options that can extend the lease term from five to 35 years. In addition, we have financing leases for network equipment that generally have a non-cancelable lease term of two to five years. The financing leases do not have renewal options and contain a bargain purchase option at the end of the lease.

On September 15, 2021, we modified the terms of one of our master lease agreements, which resulted in a $1.0 billion advance rent payment. Our operating lease liabilities were reduced as a result of this prepayment.

Maturities of lease liabilities as of September 30, 2021, were as follows:


(in millions)	Operating Leases		Finance Leases
Twelve Months Ending September 30,
2022	$	3,655	$	1,196
2023	4,282		846
2024	3,892		555
2025	3,401		150
2026	2,949		48
Thereafter	17,817		37
Total lease payments	35,996		2,832
Less: imputed interest	6,640		91
Total	$	29,356	$	2,741

Interest payments for financing leases were $15 million and $19 million for the three months ended September 30, 2021 and 2020, respectively, and $51 million and $59 million for the nine months ended September 30, 2021 and 2020, respectively.

As of September 30, 2021, we have additional operating leases for cell sites and commercial properties that have not yet commenced with future lease payments of approximately $227 million.

As of September 30, 2021, we were contingently liable for future ground lease payments related to certain tower obligations. These contingent obligations are not included in the above table as the amounts owed are contractually owed by Crown Castle International Corp. based on the subleasing arrangement. See Note 8 - Tower Obligations and Note 9 - Tower Obligations in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020, for further information.

Leases

Note 12 – Leases

Lessee

Maturities of lease liabilities as of September 30, 2021, were as follows:


(in millions)	Operating Leases		Finance Leases
Twelve Months Ending September 30,
2022	$	3,655	$	1,196
2023	4,282		846
2024	3,892		555
2025	3,401		150
2026	2,949		48
Thereafter	17,817		37
Total lease payments	35,996		2,832
Less: imputed interest	6,640		91
Total	$	29,356	$	2,741

As of September 30, 2021, we have additional operating leases for cell sites and commercial properties that have not yet commenced with future lease payments of approximately $227 million.