(8) Commitments and Contingencies

Guaranteed Service Levels

Certain customers have guaranteed levels of service with varying terms. In the event the Company is unable to provide the minimum service levels, it may incur penalties or issue credits to customers.

Litigation, Disputes, and Regulatory Matters

The Company and its subsidiaries are involved in various lawsuits, billing disputes, legal proceedings, and regulatory matters that have arisen from time to time in the normal course of business. Management believes there are no proceedings from asserted and unasserted claims that, if determined adversely, would have a material adverse effect on the Company’s financial position, results of operations or liquidity, other than as discussed below.

Universal Service Fund (“USF”) Programs

GCI Holdings receives support from various USF programs. The USF programs are subject to change by regulatory actions taken by the Federal Communications Commission, interpretations of or compliance with USF program rules, or legislative actions. The USF programs have also been subject to legal challenge, which could disrupt the support GCI Holdings receives.  On October 15, 2026, the Fifth Circuit issued an opinion vacating the fourth quarter 2025 USF contribution factor and finding that the FCC’s creation of the USAC was illegal because Congress never explicitly authorized the FCC to create USAC. The mandate effectuating the opinion will not issue until December 7, 2026, and the FCC has the opportunity to seek rehearing at the Fifth Circuit or a writ of certiorari at the Supreme Court prior to that time, which could delay the effective date. Changes to any of the USF programs that GCI Holdings participates in could result in a material decrease in revenue and accounts receivable, which could have an adverse effect on GCI Holdings' business and the Company's financial position, results of operations or liquidity.