v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 17 – 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 2040. 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 for five to 50 years. In addition, we have financing leases for network equipment that generally have a non-cancelable lease term of three to five years. The financing leases do not have renewal options and contain a bargain purchase option at the end of the lease.

The components of lease expense were as follows:
Year Ended December 31,
(in millions)202520242023
Operating lease expense$4,945 $4,787 $4,987 
Financing lease expense:
Amortization of right-of-use assets794 787 684 
Interest on lease liabilities126 111 79 
Total financing lease expense920 898 763 
Variable lease expense252 279 411 
Total lease expense$6,117 $5,964 $6,161 

Information relating to the lease term and discount rate is as follows:
Year Ended December 31,
202520242023
Weighted-Average Remaining Lease Term (Years)
Operating leases889
Financing leases222
Weighted-Average Discount Rate
Operating leases4.6 %4.4 %4.3 %
Financing leases5.0 %5.3 %4.6 %
Maturities of lease liabilities as of December 31, 2025, were as follows:
(in millions)Operating LeasesFinance Leases
Twelve Months Ending December 31,
2026$5,060 $1,222 
20274,782 772 
20284,425 347 
20294,111 17 
20303,730 4 
Thereafter13,987 7 
Total lease payments36,095 2,369 
Less: imputed interest(5,910)(99)
Total$30,185 $2,270 

Interest payments for financing leases were $126 million, $111 million and $79 million for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $38 million.

As of December 31, 2025, 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 CCI based on the subleasing arrangement. See Note 10 – Tower Obligations for further information.

On the UScellular Acquisition Date, we entered into a master license agreement to lease space on at least 2,100 towers being retained by UScellular and extended our tenancy term on approximately 600 additional towers where we are already leasing space from UScellular for 15 years post-closing. In addition, through the master license agreement, we leased space on approximately 1,800 additional UScellular towers on an interim basis for up to 30 months after the UScellular Acquisition Date. As a result of entering into the master license agreement, we recorded right-of use assets and lease liabilities of $1.0 billion each on the UScellular Acquisition Date, with a corresponding increase to both deferred tax liabilities and assets of $261 million.
Leases
Note 17 – 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 2040. 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 for five to 50 years. In addition, we have financing leases for network equipment that generally have a non-cancelable lease term of three to five years. The financing leases do not have renewal options and contain a bargain purchase option at the end of the lease.

The components of lease expense were as follows:
Year Ended December 31,
(in millions)202520242023
Operating lease expense$4,945 $4,787 $4,987 
Financing lease expense:
Amortization of right-of-use assets794 787 684 
Interest on lease liabilities126 111 79 
Total financing lease expense920 898 763 
Variable lease expense252 279 411 
Total lease expense$6,117 $5,964 $6,161 

Information relating to the lease term and discount rate is as follows:
Year Ended December 31,
202520242023
Weighted-Average Remaining Lease Term (Years)
Operating leases889
Financing leases222
Weighted-Average Discount Rate
Operating leases4.6 %4.4 %4.3 %
Financing leases5.0 %5.3 %4.6 %
Maturities of lease liabilities as of December 31, 2025, were as follows:
(in millions)Operating LeasesFinance Leases
Twelve Months Ending December 31,
2026$5,060 $1,222 
20274,782 772 
20284,425 347 
20294,111 17 
20303,730 4 
Thereafter13,987 7 
Total lease payments36,095 2,369 
Less: imputed interest(5,910)(99)
Total$30,185 $2,270 

Interest payments for financing leases were $126 million, $111 million and $79 million for the years ended December 31, 2025, 2024 and 2023, respectively.

As of December 31, 2025, we have additional operating leases for commercial properties that have not yet commenced with future lease payments of approximately $38 million.

As of December 31, 2025, 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 CCI based on the subleasing arrangement. See Note 10 – Tower Obligations for further information.

On the UScellular Acquisition Date, we entered into a master license agreement to lease space on at least 2,100 towers being retained by UScellular and extended our tenancy term on approximately 600 additional towers where we are already leasing space from UScellular for 15 years post-closing. In addition, through the master license agreement, we leased space on approximately 1,800 additional UScellular towers on an interim basis for up to 30 months after the UScellular Acquisition Date. As a result of entering into the master license agreement, we recorded right-of use assets and lease liabilities of $1.0 billion each on the UScellular Acquisition Date, with a corresponding increase to both deferred tax liabilities and assets of $261 million.