v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 10 Leases
Lessee Agreements
Array's most significant leases are for land and office space, all of which are classified as operating leases. Many of Array's leases include renewal and early termination options. Lease terms include options to extend or terminate when it is reasonably certain that Array will exercise the option.
Array has recognized a right-of-use asset and a corresponding lease liability that represents the present value of Array's obligation to make payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate, which was determined using a portfolio approach based on Array's unsecured rates, adjusted to approximate the rates at which Array would be required to borrow on a collateralized basis over a term similar to the recognized lease term.
Lease and nonlease components are accounted for separately and the cost of nonlease components (e.g., utilities and common area maintenance) are typically expensed as incurred at their relative standalone price.
Array recognizes variable lease expense related to lease payments that were not originally included in the lease liability calculation, which primarily relate to lease payment escalations that are tied to an index, real estate taxes, or additional payments linked to performance.
The following table shows the components of lease cost included in the Consolidated Statement of Operations:
Year Ended December 31,202520242023
(Dollars in thousands)
Operating lease cost$51,300 $48,557 $47,034 
Variable lease cost6,768 6,518 6,023 
Total$58,068 $55,075 $53,057 
The following table shows supplemental cash flow information related to lease activities:
Year Ended December 31,202520242023
(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash flows from operating leases$46,589 $46,273 $43,167 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$34,559 $37,792 $43,111 
The table below shows a weighted-average analysis for lease terms and discount rates for operating leases:
December 31,20252024
Weighted Average Remaining Lease Term21 years20 years
Weighted Average Discount Rate5.1 %4.9 %
The maturities of lease liabilities are as follows:
 Operating Leases
(Dollars in thousands)
2026$41,847 
202745,202 
202844,261 
202943,363 
203042,854 
Thereafter784,776 
Total lease payments$1,002,303 
Less: Imputed interest477,133 
Present value of lease liabilities$525,170 
Lessor Agreements
Array's most significant lessor leases are for tower space, all of which are classified as operating leases. Many of Array's leases include renewal and early termination options. Lease terms include options to extend or terminate when it is reasonably certain that the lessee will exercise the option. Underlying assets leased to customers under operating leases are included in Communications infrastructure assets in Note 9 — Property, Plant and Equipment.
Array’s lessor agreements with lease and nonlease components are generally accounted for separately.
Array recognizes variable lease income related to lease payments that were not originally included in the lease receivable calculation, which primarily relate to lease payment escalations that are tied to an index.
The following table shows the components of lease income which are included in Site rental revenues in the Consolidated Statement of Operations:
Year Ended December 31,202520242023
(Dollars in thousands)
Operating lease income$154,654 $102,610 $100,382 
The maturities of expected lease payments to be received are as follows. The table below does not include lease payments for Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA.
 Operating Leases
(Dollars in thousands)
2026$144,858 
2027144,885 
2028136,511 
2029127,272 
2030115,813 
Thereafter1,070,051 
Total future lease maturities$1,739,390