XML 40 R17.htm IDEA: XBRL DOCUMENT
v3.22.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
Leases | Note 10 Leases Lessee Agreements UScellular’s most significant leases are for land and tower spaces, network facilities, retail spaces, and offices. Nearly all of UScellular’s leases are classified as operating leases, although it does have a small number of finance leases. UScellular has agreements with both lease and nonlease components, which are accounted for separately. As part of the present value calculation for the lease liabilities, UScellular uses an incremental borrowing rate as the rates implicit in the leases are not readily determinable. The incremental borrowing rates used for lease accounting are based on UScellular's unsecured rates, adjusted to approximate the rates at which UScellular would be required to borrow on a collateralized basis over a term similar to the recognized lease term. UScellular applies the incremental borrowing rates to lease components using a portfolio approach based upon the length of the lease term. The cost of nonlease components in UScellular’s lease portfolio (e.g., utilities and common area maintenance) are not typically predetermined at lease commencement and are expensed as incurred at their relative standalone price. Variable lease expense occurs when, subsequent to the lease commencement, lease payments are made that were not originally included in the lease liability calculation. UScellular’s variable lease payments are primarily a result of leases with escalations that are tied to an index. The incremental changes due to the index changes are recorded as variable lease expense and are not included in the right-of-use assets or lease liabilities. The identified lease term determines the periods to which expense is allocated and is also utilized in the right-of-use asset and liability calculations. Many of UScellular’s leases include renewal and early termination options. At lease commencement, the lease terms include options to extend the lease when UScellular is reasonably certain that it will exercise the options. The lease terms do not include early termination options unless UScellular is reasonably certain to exercise the options. UScellular has applied the portfolio approach in cases where asset classes have similar lease characteristics including tower space, retail, and certain ground lease asset classes. The following table shows the components of lease cost included in the Consolidated Statement of Operations:
Year Ended December 31, | 2022 |  | 2021 |  | 2020
(Dollars in millions) |  |  |  |  |
Operating lease cost | $ | 188 |  |  | $ | 181 |  |  | $ | 171 |
Variable lease cost | 11 |  |  | 10 |  |  | 10 |
Total | $ | 199 |  |  | $ | 191 |  |  | $ | 181 |
The following table shows supplemental cash flow information related to lease activities:
Year Ended December 31, | 2022 |  | 2021 |  | 2020
(Dollars in millions) |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 185 |  |  | $ | 183 |  |  | $ | 169 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 113 |  |  | $ | 182 |  |  | $ | 155 |
The table below shows a weighted-average analysis for lease terms and discount rates for operating leases:
December 31, | 2022 |  | 2021
Weighted Average Remaining Lease Term | 12 years |  | 12 years
Weighted Average Discount Rate | 3.9 | % |  | 3.8 | %
The maturities of lease liabilities are as follows:
| Operating Leases |  |  |
(Dollars in millions) |  |  |  |
2023 | $ | 166 |  |  |  |
2024 | 163 |  |  |  |
2025 | 138 |  |  |  |
2026 | 106 |  |  |  |
2027 | 84 |  |  |  |
Thereafter | 654 |  |  |  |
Total lease payments 1 | $ | 1,311 |  |  |  |
Less: Imputed interest | 335 |  |  |  |
Present value of lease liabilities | $ | 976 |  |  |  |
1 Lease payments exclude $41 million of legally binding lease payments for leases signed but not yet commenced. Lessor Agreements UScellular's most significant lessor leases are for tower space. All of UScellular’s lessor leases are classified as operating leases. A lease is generally present in a contract if the lessee controls the use of identified property, plant, or equipment for a period of time in exchange for consideration. UScellular’s lessor agreements with lease and nonlease components are generally accounted for separately. The identified lease term determines the periods to which revenue is allocated over the term of the lease. Many of UScellular’s leases include renewal and early termination options. At lease commencement, lease terms include options to extend the lease when UScellular is reasonably certain that lessees will exercise the options. Lease terms would not include periods after the date of a termination option that lessees are reasonably certain to exercise. Variable lease income occurs when, subsequent to the lease commencement, lease payments are received that were not originally included in the lease receivable calculation. UScellular’s variable lease income is primarily a result of leases with escalations that are tied to an index. The incremental increases due to the index changes are recorded as variable lease income. 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, | 2022 |  | 2021 |  | 2020
(Dollars in millions) |  |  |  |  |
Operating lease income | $ | 93 |  |  | $ | 83 |  |  | $ | 77 |
The maturities of expected lease payments to be received are as follows:
| Operating Leases
(Dollars in millions) |
2023 | $ | 81 |
2024 | 74 |
2025 | 56 |
2026 | 38 |
2027 | 20 |
Thereafter | 27 |
Total future lease maturities | $ | 296 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration