Leases

12 Months Ended

Dec. 31, 2024

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(10) Leases:

We have operating and finance leases for certain facilities and equipment used in our operations. Some of our real estate operating leases contain renewal options that may be exercised, and some of our leases include options to terminate the leases within one year.

We have recognized a right-of-use asset for both operating and finance leases, and a corresponding lease liability that represents the present value of our obligation to make payments over the lease term.

The components of lease cost are as follows:


		For the year ended	For the year ended		For the year ended
		December 31,	December 31,		December 31,
($ in millions)		2024	2023		2022

Lease cost:
Finance lease cost:
Amortization of right-of-use assets	$	30	$	25	$	19
Interest on lease liabilities		23		16		9
Finance lease cost		53		41		28
Operating lease cost ⁽¹⁾		57		61		62
Sublease income		(10)		(15)		(12)
Total lease cost	$	100	$	87	$	78

⁽¹⁾Includes short-term lease costs of $2 million, $2 million and $3 million for the year ended December 31, 2024, 2023 and 2022, respectively. Includes variable lease costs of $3 million, $5 million and $5 million for the year ended December 31, 2024, 2023 and 2022, respectively.

Supplemental balance sheet information related to leases is as follows:



($ in millions)	December 31, 2024			December 31, 2023

Operating right-of-use assets	$	194	⁽¹⁾	$	181	⁽¹⁾
Finance right-of-use assets	$	246	⁽²⁾	$	179	⁽²⁾

Operating lease liabilities	$	204	⁽³⁾	$	195	⁽³⁾
Finance lease liabilities	$	269	⁽⁴⁾	$	209	⁽⁴⁾

Operating leases:
Weighted-average remaining lease term		7.43	years		7.72	years
Weighted-average discount rate		5.96	%		5.92	%

Finance leases:
Weighted-average remaining lease term		8.87	years		10.72	years
Weighted-average discount rate		6.99	%		7.18	%

⁽¹⁾Operating ROU assets are included in Other assets on our consolidated balance sheet.

⁽²⁾Finance ROU assets are included in Property, plant, and equipment on our consolidated balance sheets.

⁽³⁾This amount represents $43 million and $161 million, and $41 million and $154 million, included in other current liabilities and other liabilities, respectively, on our December 31, 2024 and 2023 consolidated balance sheets.

⁽⁴⁾This amount represents $46 million and $223 million, and $28 million and $181 million, included in other current liabilities and other liabilities, respectively, on our December 31, 2024 and 2023 consolidated balance sheets.

Supplemental cash flow information related to leases is as follows:


	For the year ended		For the year ended		For the year ended
	December 31,		December 31,		December 31,
($ in millions)	2024		2023		2022

Cash paid for amount included in the measurement of lease liabilities, net of amounts received as revenue:
Operating cash flows provided by operating leases	$	52	$	62	$	63
Operating cash flows used by operating leases	$	(57)	$	(61)	$	(62)
Operating cash flows used by finance leases	$	(23)	$	(15)	$	(9)
Financing cash flows used by finance leases	$	(31)	$	(25)	$	(19)

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	45	$	36	$	44
Finance leases	$	89	$	60	$	4

Lessee

For lessee agreements, we elected to apply the short-term lease recognition exemption for all leases that qualify and as such, does not recognize assets or liabilities for leases with terms of less than twelve months, including existing leases at transition. We elected not to separate lease and non-lease components.

We have operating and finance leases for administrative and network properties, vehicles, and certain equipment. Our leases have remaining lease terms of 1 year to 83 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year.

The following represents a maturity analysis for our operating and finance lease liabilities as of December 31, 2024:



		Operating		Finance
($ in millions)		Leases		Leases
Future maturities:
2025	$	42	$	53
2026		38		51
2027		34		46
2028		31		40
2029		25		26
Thereafter		62		106
Total lease payments		232		322
Less: imputed interest		(28)		(53)
Present value of lease liabilities	$	204	$	269

Lessor

We are the lessor for operating leases of towers, datacenters, corporate offices, and certain equipment. Our leases have remaining lease terms of 1 year to 62 years, some of which include options to extend the leases, and some of which include options to terminate the leases within 1 year. None of these leases include options for our lessees to purchase the underlying asset.

A significant number of our service contracts with our customers include equipment rentals. We have elected to apply the practical expedient to account for those associated equipment rentals and services as a single, combined component. We have evaluated the service component to be ‘predominant’ in these contracts and have accounted for the combined component as a single performance obligation under ASC 606.

We, as a lessor, recognized revenue of $52 million, $62 million and $63 million for the year ended December 31, 2024, 2023 and 2022, respectively.

The following represents a maturity analysis for our future operating lease payments from customers as of December 31, 2024:



	Operating
($ in millions)	Lease Payments
Future maturities of lease payments from customers:
2025	$	10
2026		10
2027		10
2028		9
2029		7
Thereafter		1
Total lease payments from customers	$	47