Leases
The components of lease expense for the years ended December 31, 2025, 2024, and 2023 were as follows:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Operating lease costs: | | | | | |
| Operating lease cost | $ | 56 | | | $ | 56 | | | $ | 54 | |
| | | | | |
| Short-term lease cost | 2 | | | 2 | | | 2 | |
| Total operating lease costs | $ | 58 | | | $ | 58 | | | $ | 56 | |
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| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | $ | — | | | $ | — | | | $ | 1 | |
| | | | | |
| Total finance lease costs | $ | — | | | $ | — | | | $ | 1 | |
Variable operating lease cost was $5, $4, and $5 for the years ended December 31, 2025, 2024, and 2023. Interest on finance lease liabilities was less than $1 for each of the years ended December 31, 2025, 2024, and 2023.
Supplemental cash flow information related to leases was as follows: | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 58 | | | $ | 55 | | | $ | 54 | |
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| Financing cash flows from finance leases | 2 | | | 2 | | | 2 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 52 | | | $ | 52 | | | $ | 36 | |
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Supplemental balance sheet information related to finance leases was as follows: | | | | | | | | | | | |
| 2025 | | 2024 |
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| Finance leases: | | | |
| Property, plant, and equipment | $ | 23 | | | $ | 19 | |
| Accumulated depreciation | (4) | | | (3) | |
| Property, plant, and equipment, net | $ | 19 | | | $ | 16 | |
| | | |
| Accrued liabilities | $ | 2 | | | $ | 1 | |
| Other non-current liabilities | 2 | | | 3 | |
| Total finance lease liabilities | $ | 4 | | | $ | 4 | |
The weighted average remaining lease term and weighted average discount rates for each year were as follows: | | | | | | | | | | | | |
| 2025 | | 2024 | |
| Weighted average remaining lease term (years): | | | | |
| Operating leases | 7.9 | | 9.4 | |
| Finance leases | 2.1 | | 3.1 | |
| Weighted average discount rate: | | | | |
| Operating leases | 4.9 | % | | 4.7 | % | |
| Finance leases | 2.9 | % | | 2.7 | % | |
Maturities of lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| 2026 | $ | 49 | | | $ | 2 | |
| 2027 | 42 | | | 2 | |
| 2028 | 45 | | | — | |
| 2029 | 28 | | | — | |
| 2030 | 20 | | | — | |
| Thereafter | 83 | | | — | |
| Total lease payments | 267 | | | 4 | |
| Less imputed interest | (61) | | | — | |
| $ | 206 | | | $ | 4 | |
At December 31, 2025, the Company did not have material lease commitments that had not commenced.
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.