Leases

12 Months Ended

Dec. 31, 2024

Note 11 Leases

Lessee Agreements

TDS’ most significant leases are for land and tower spaces, network facilities, retail spaces, and offices, substantially all of which are classified as operating leases. Many of TDS' leases include renewal and early termination options. Lease terms include options to extend or terminate when it is reasonably certain that TDS will exercise the option.

TDS has recognized a right-of-use asset and a corresponding lease liability that represents the present value of TDS’ obligation to make payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate, which was determined using a portfolio approach based on TDS' unsecured rates, adjusted to approximate the rates at which TDS would be required to borrow on a collateralized basis over a term similar to the recognized lease term.

Lease and nonlease components are accounted for separately and the cost of nonlease components (e.g., utilities and common area maintenance) are typically expensed as incurred at their relative standalone price.

TDS recognizes variable lease expense related to lease payments that were not originally included in the lease liability calculation, which primarily relate to lease payment escalations that are tied to an index, real estate taxes, and additional payments linked to performance.

The following table shows the components of lease cost included in the Consolidated Statement of Operations:


Year Ended December 31,	2024		2023		2022
(Dollars in millions)
Operating lease cost	$	213	$	207	$	206




Variable lease cost	14		13		12

Total	$	227	$	220	$	218

The following table shows supplemental cash flow information related to lease activities:


Year Ended December 31,	2024		2023		2022
(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	224	$	213	$	204


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	178	$	168	$	125

The table below shows a weighted-average analysis for lease terms and discount rates for operating leases:


December 31,	2024		2023

Weighted Average Remaining Lease Term	13 years		12 years



Weighted Average Discount Rate	4.7	%	4.3	%

The maturities of lease liabilities are as follows:


	Operating Leases
(Dollars in millions)
2025	$	195
2026	168
2027	143
2028	121
2029	91
Thereafter	720
Total lease payments1	$	1,438
Less: Imputed interest	418
Present value of lease liabilities	$	1,020

1 Lease payments exclude $27 million of legally binding lease payments for leases signed but not yet commenced.

Lessor Agreements

TDS’ most significant lessor leases are for tower space, all of which are classified as operating leases. Many of TDS’ leases include renewal and early termination options. Lease terms include options to extend or terminate when it is reasonably certain that the lessee will exercise the option.

Lessor agreements with lease and nonlease components are generally accounted for separately.

TDS recognizes variable lease income related to lease payments that were not originally included in the lease receivable calculation, which primarily relate to lease payment escalations that are tied to an index.

The following table shows the components of lease income which are included in Service revenues in the Consolidated Statement of Operations:


Year Ended December 31,	2024		2023		2022
(Dollars in millions)
Operating lease income	$	121	$	127	$	120

The maturities of expected lease payments to be received are as follows:


	Operating Leases
(Dollars in millions)
2025	$	89
2026	79
2027	61
2028	47
2029	27
Thereafter	19
Total future lease maturities	$	322