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(10) Leases
The Company and its subsidiaries lease business offices, satellite transponders and equipment. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments using our incremental borrowing rate at the commencement date of the lease. The Company accounts for lease and non-lease components as a single component and does not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less or leases with non-consecutive periods of use that total twelve months or less at the lease commencement date.
Our leases have remaining lease terms of 1 year to 19 years, some of which may include the option to extend for up to 5 years, and some of which include options to terminate the leases within 1 year.
The following table presents the components of lease expense:
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|
|
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|
|
|
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Years ended December 31, |
|
|
2023 |
|
2022 |
|
2021 |
|
|
|
amounts in millions |
|
Finance lease cost |
|
|
|
|
|
|
|
Depreciation of leased assets |
$ |
21 |
|
32 |
|
35 |
|
Interest on lease liabilities |
|
3 |
|
5 |
|
6 |
|
Total finance lease cost |
|
24 |
|
37 |
|
41 |
|
Operating lease cost |
|
71 |
|
89 |
|
89 |
|
Short-term operating lease cost |
|
67 |
|
— |
|
— |
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Sublease income |
|
(3) |
|
(3) |
|
(4) |
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Total lease cost |
$ |
159 |
|
123 |
|
126 |
|
The remaining weighted-average lease terms and the weighted average discount rates were as follows:
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|
|
|
|
|
|
|
2023 |
|
2022 |
|
2021 |
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Weighted-average remaining lease term (years): |
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|
|
|
|
|
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Finance leases |
|
3.0 |
|
24.4 |
|
27.7 |
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Operating leases |
|
7.3 |
|
8.2 |
|
8.4 |
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Weighted-average discount rate: |
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|
|
|
|
|
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Finance leases |
|
2.3% |
|
4.5% |
|
4.7% |
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Operating leases |
|
5.2% |
|
5.3% |
|
5.2% |
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The following table presents supplemental balance sheet information related to leases:
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|
December 31, |
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|
2023 |
|
2022 |
|
|
|
amounts in millions |
|
Operating leases: |
|
|
|
|
|
Operating lease right-of-use assets (1) |
$ |
315 |
|
344 |
|
|
|
|
|
|
|
Current operating lease liabilities (2) |
$ |
53 |
|
53 |
|
Operating lease liabilities (3) |
|
323 |
|
349 |
|
Total operating lease liabilities |
$ |
376 |
|
402 |
|
|
|
|
|
|
|
Finance Leases: |
|
|
|
|
|
Property and equipment, at cost |
$ |
33 |
|
491 |
|
Accumulated depreciation |
|
(12) |
|
(181) |
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Property and equipment, net |
$ |
21 |
|
310 |
|
|
|
|
|
|
|
Current finance lease liabilities (2) |
$ |
5 |
|
7 |
|
Finance lease liabilities (3) |
|
10 |
|
117 |
|
Total finance lease liabilities |
$ |
15 |
|
124 |
|
|
(1) |
Included in Other assets in the consolidated balance sheet |
|
(2) |
Included in Other current liabilities in the consolidated balance sheet |
|
(3) |
Included in Other liabilities in the consolidated balance sheet |
Supplemental cash flow information related to leases was as follows:
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|
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|
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Years ended December 31, |
|
|
2023 |
|
2022 |
|
2021 |
|
|
|
amounts in millions |
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Cash paid for amounts included in the measurement of lease liabilities: |
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|
|
|
|
|
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Operating cash flows for operating leases |
$ |
84 |
|
86 |
|
89 |
|
Financing cash flows for finance leases |
$ |
7 |
|
7 |
|
5 |
|
|
|
|
|
|
|
|
|
Right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
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Operating leases |
$ |
30 |
|
17 |
|
11 |
|
Future minimum payments under noncancelable operating leases and finance leases with initial terms of one year or more at December 31, 2023 consisted of the following:
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|
|
|
|
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Finance leases |
|
Operating leases |
|
|
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amounts in millions |
|
2024 |
$ |
4 |
|
69 |
|
2025 |
|
6 |
|
72 |
|
2026 |
|
5 |
|
64 |
|
2027 |
|
— |
|
59 |
|
2028 |
|
— |
|
52 |
|
Thereafter |
|
— |
|
132 |
|
Total lease payments |
|
15 |
|
448 |
|
Less: implied interest |
|
0 |
|
72 |
|
Present value of lease liabilities |
$ |
15 |
|
376 |
|
The Company expects to pay $65 million in 2024, $69 million in 2025, $2 million in 2026 and $2 million in 2027 related to short-term leases that extend over multiple years.
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