LeasesThe Company has operating leases primarily for real estate, data centers, and equipment. Remaining lease terms are up to 10 years.
Supplemental Consolidated Balance Sheets information related to the Company’s operating leases is as follows:
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| | | | December 31, |
| Lease | | Balance Sheet Presentation | | 2025 | | 2024 |
| Operating lease right-of-use asset | | Operating lease right-of-use assets | | $ | 136.7 | | | $ | 120.2 | |
| | | | | | |
| Current operating lease liabilities | | Accrued expenses and other current liabilities - Other | | $ | 32.9 | | | $ | 32.2 | |
| Long-term operating lease liabilities | | Long-term liabilities - Operating lease liabilities | | 157.8 | | | 149.1 | |
| Total lease liabilities | | | | $ | 190.7 | | | $ | 181.3 | |
| | | | | | |
| | | | December 31, |
| Lease term and discount rate | | 2025 | | 2024 |
| Weighted average remaining lease term (years) | | 7.2 | | 7.9 |
| | | | | | |
| Weighted average discount rate | | 4.19 | % | | 4.26 | % |
| | | | | | |
Operating lease cost, inclusive of variable and short-term lease cost, for the years ended December 31, 2025, 2024, and 2023 was $59 million, $60 million, and $62 million, respectively.
As of December 31, 2025, aggregate future maturities of operating lease liabilities are as follows for the years ending December 31:
| | | | | | | | |
| Years | | Operating Lease Liabilities |
| 2026 | | $ | 40.8 | |
| 2027 | | 36.2 | |
| 2028 | | 31.3 | |
| 2029 | | 23.8 | |
| 2030 | | 20.9 | |
| Thereafter | | 71.5 | |
| Total lease payments | | $ | 224.5 | |
| Less: Interest | | (32.7) | |
Less: Lease Incentives(1) | | (1.1) | |
| Present value of lease liabilities | | $ | 190.7 | |
(1)Includes lease incentives that will be realized in 2026.
Supplemental cash flow information related to operating leases is as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating cash flows from operating leases | | $ | 46.0 | | | $ | 44.0 | | | $ | 41.7 | |
| Right-of-use assets obtained in exchange for lease obligations | | | | | | |
| Operating leases | | $ | 41.6 | | | $ | 18.7 | | | $ | 24.6 | |
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.