(6) Leases In 2016 and 2017, GCI Holdings sold certain tower sites and entered into a master lease agreement in which it leased back space on those tower sites. GCI Holdings determined that it is precluded from applying sales-leaseback accounting. GCI Holdings leases office space, land for towers and communication facilities, satellite transponders, fiber capacity, and equipment. These leases are classified as operating leases. Operating lease right-of-use (“ROU”) 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. If lease terms are modified, the ROU assets and operating lease liabilities are adjusted to reflect the updated future lease payments and changes in the incremental borrowing rate. GCI Holdings has also entered into finance lease agreements with respect to certain of its network related equipment. The Company has leases with remaining lease terms that range from less than one year up to 25 years. Certain of the Company’s leases may include an option to extend the term of the lease with such options to extend ranging from one year up to 33 years. The Company also has the option to terminate certain of its leases early with such options to terminate ranging from as early as 30 days up to 12 years from December 31, 2025. The components of lease cost during the years ended December 31, 2025 and 2024 were as follows: | | | | | | | | | Years ended December 31, | | | 2025 | | 2024 | | | | | amounts in millions | Operating lease cost (1) | | $ | 59 | | 61 | | | | | | | | | Finance lease cost | | | | | | | Depreciation of leased assets | | $ | 1 | | 1 | | Total finance lease cost | | $ | 1 | | 1 | |
| (1) | Included within operating lease costs were short-term lease costs and variable lease costs, which were not material to the consolidated financial statements. |
The remaining weighted-average lease term and the weighted average discount rate were as follows: | | | | | | | | | | December 31, | | | | 2025 | | | 2024 | | | Weighted-average remaining lease term (years): | | | | | | | | Finance leases | | 0.7 | | | 1.6 | | | Operating leases | | 4.1 | | | 3.7 | | | Weighted-average discount rate: | | | | | | | | Finance leases | | 4.6 | % | | 4.3 | % | | Operating leases | | 7.3 | % | | 7.4 | % | |
Supplemental balance sheet information related to leases was as follows: | | | | | | | | | December 31, | | | | 2025 | | 2024 | | | | | amounts in millions | | Operating leases: | | | | | | | Operating lease ROU assets, net (1) | | $ | 71 | | 109 | | | | | | | | | Current operating lease liabilities (2) | | $ | 35 | | 48 | | Operating lease liabilities (3) | | | 33 | | 60 | | Total operating lease liabilities | | $ | 68 | | 108 | | | | | | | | | Finance Leases: | | | | | | | Property and equipment, at cost | | $ | 15 | | 8 | | Accumulated depreciation | | | (7) | | (3) | | Property and equipment, net | | $ | 8 | | 5 | | | | | | | | | Current obligations under finance leases (4) | | $ | — | | 1 | | Obligations under finance leases | | | — | | — | | Total finance lease liabilities | | $ | — | | 1 | |
| (1) | Operating lease ROU assets, net are included within the Other assets, net line item in the accompanying consolidated balance sheets. |
| (2) | Current operating lease liabilities are included within the Other current liabilities line item in the accompanying consolidated balance sheets. |
| (3) | Operating lease liabilities are included within the Other liabilities line item in the accompanying consolidated balance sheets. |
| (4) | Current obligations under finance leases are included within the Other current liabilities line item in the accompanying consolidated balance sheets. |
Supplemental cash flow information related to leases was as follows: | | | | | | | | | Years ended December 31, | | | | 2025 | | 2024 | | | | | amounts in millions | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash outflows from operating leases | | $ | 60 | | 56 | | Financing cash outflows from finance leases | | $ | 1 | | 1 | | ROU assets obtained in exchange for lease obligations | | | | | | | Operating leases | | $ | 16 | | 61 | |
Future lease payments under operating leases and tower obligations with initial terms of one year or more at December 31, 2025 consisted of the following: | | | | | | | | | | Operating Leases | | Tower Obligations | | | | | amounts in millions | | 2026 | | $ | 39 | | 7 | | 2027 | | | 13 | | 7 | | 2028 | | | 10 | | 8 | | 2029 | | | 6 | | 8 | | 2030 | | | 4 | | 8 | | Thereafter | | | 11 | | 67 | | Total payments | | | 83 | | 105 | | Less: imputed interest | | | 15 | | 33 | | Total liabilities | | $ | 68 | | 72 | |
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