Company: IRDM
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005302
Chunk: 140

Company: Iridium Communications Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 140
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, resulting in unbilled accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $36.9 million, $31.4 million and $26.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed: Year Ended December 31,20242023(In thousands)Contract Assets:Commissions$1,058 $1,114 Other contract costs$1,798 $1,970 

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10. Leases

The Company has operating leases for land, office space, satellite network operations center (“SNOC”) facilities, system gateway facilities, a warehouse and a distribution center. The Company also has operations and maintenance (“O&M”) agreements that include leases associated with two teleport network facilities. Some of the Company’s leases include options to extend the leases for up to 8 years. The Company does not include term extension options as part of its present value calculation of lease liabilities unless it is reasonably certain to exercise those options. As of December 31, 2024, the Company’s weighted-average remaining lease term relating to its operating leases was 4.4 years, and the weighted-average discount rate used to calculate the operating lease liability payment was 6.8%. The following table summarizes the Company’s lease-related assets and liabilities:LeasesClassificationDecember 31, 2024December 31, 2023(In thousands)Operating lease assetsNoncurrentOther assets$14,285 $16,133 Total lease assets$14,285 $16,133 Operating lease liabilitiesCurrentAccrued expenses and other current liabilities$5,043 $4,327 NoncurrentOther long-term liabilities$11,059 14,087 Total lease liabilities$16,102 $18,414 During the years ended December 31, 2024, 2023 and 2022, the Company incurred lease expense of $6.0 million, $5.2 million and $5.2 million, respectively. A portion of lease expense during