Leases
Total lease expense was $46 million, $49 million and $55 million for the years ended December 31, 2025, 2024 and 2023. Total lease expense includes operating lease expense of $29 million, $29 million and $34 million and variable lease expense of $17 million, $20 million and $21 million for the years ended December 31, 2025, 2024 and 2023. Cash paid for amounts included in operating lease liabilities was $33 million, $55 million and $38 million for the years ended December 31, 2025, 2024 and 2023. Operating lease ROU assets obtained in exchange for lease obligations was $12 million, $54 million and $28 million for the years ended December 31, 2025, 2024 and 2023.
The following table presents operating lease ROU assets and lease liabilities.
| | | | | | | | | | | |
| (In millions) | December 31, 2025 | | December 31, 2024 |
| Operating lease ROU assets | $ | 148 | | | $ | 158 | |
| Operating lease liabilities | 218 | | | 239 | |
The following table presents the maturities of operating lease liabilities.
| | | | | |
| (In millions) | December 31, 2025 |
| 2026 | $ | 34 | |
| 2027 | 35 | |
| 2028 | 31 |
| 2029 | 31 | |
| 2030 | 26 |
| Thereafter | 104 | |
| Total lease payments | 261 | |
| Less: Discount | (43) | |
| Total operating lease liabilities | $ | 218 | |
The following table presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease ROU assets.
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Weighted average remaining lease term | 8.6 years | | 8.8 years |
| Weighted average discount rate | 4.0 | % | | 3.9 | % |
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.