LESSEE — The following table summarizes the amounts recognized on the Consolidated Balance Sheets related to lease asset and liability balances as of the dates indicated (in millions):
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| | Consolidated Balance Sheet Classification | | December 31, 2025 | | | December 31, 2024 |
| Assets | | | | | | | |
| Right-of-use assets — finance leases | | Property, plant, and equipment, net | | $ | 676 | | | | $ | 547 | |
| Right-of-use assets — operating leases | | Other noncurrent assets | | 369 | | | | 372 | |
| Total right-of-use assets | | | | $ | 1,045 | | | | $ | 919 | |
| Liabilities | | | | | | | |
| Finance lease liabilities (current) | | Non-recourse debt (current liabilities) | | $ | 21 | | | | $ | 18 | |
| Finance lease liabilities (noncurrent) | | Non-recourse debt (noncurrent liabilities) | | 714 | | | | 553 | |
| Total finance lease liabilities | | | | 735 | | | | 571 | |
| Operating lease liabilities (current) | | Accrued and other liabilities | | 36 | | | | 26 | |
| Operating lease liabilities (noncurrent) | | Other noncurrent liabilities | | 394 | | | | 392 | |
| Total operating lease liabilities | | | | 430 | | | | 418 | |
| Total lease liabilities | | | | $ | 1,165 | | | | $ | 989 | |
The following table summarizes supplemental balance sheet information related to leases as of the dates indicated:
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| Lease Term and Discount Rate | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term — finance leases | 35 years | | 36 years |
| Weighted-average remaining lease term — operating leases | 22 years | | 27 years |
| Weighted-average discount rate — finance leases | 5.47 | % | | 5.38 | % |
| Weighted-average discount rate — operating leases | 6.35 | % | | 7.25 | % |
The following table summarizes the components of lease cost recognized in Cost of Sales on the Consolidated Statements of Operations for the periods indicated (in millions):
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| Years Ended December 31, | | |
Components of Lease Cost | 2025 | | 2024 | | |
| | | | | |
| Operating lease cost | $ | 54 | | | $ | 56 | | | |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | 16 | | | 13 | | | |
| Interest on lease liabilities | 31 | | | 22 | | | |
| Short-term lease costs | 17 | | | 18 | | | |
| Variable lease cost | 2 | | | — | | | |
| | | | | |
| Total lease cost | $ | 120 | | | $ | 109 | | | |
Operating cash outflows from operating leases included in the measurement of lease liabilities were $59 million for both the years ended December 31, 2025 and 2024, and operating cash outflows from finance leases were $21 million and $7 million for the years ended December 31, 2025 and 2024. Right-of-use assets obtained in exchange for new operating and finance lease liabilities were $50 million and $154 million, respectively, for the year ended December 31, 2025, and $129 million and $327 million, respectively, for the year ended December 31, 2024.
The following table shows the future lease payments under operating and finance leases for continuing operations together with the present value of the net lease payments as of December 31, 2025 for 2026 through 2030 and thereafter (in millions):
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| Maturity of Lease Liabilities |
| Finance Leases | | Operating Leases |
| 2026 | $ | 36 | | | $ | 50 | |
| 2027 | 38 | | | 39 | |
| 2028 | 39 | | | 35 | |
| 2029 | 41 | | | 33 | |
| 2030 | 42 | | | 33 | |
| Thereafter | 1,518 | | | 653 | |
| Total | 1,714 | | | 843 | |
| Less: Imputed interest | (979) | | | (413) | |
| Present value of lease payments | $ | 735 | | | $ | 430 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.