Leases
The components of lease costs for operating leases for the years ended December 31, 2025, 2024 and 2023 was as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease costs | $ | 107.5 | | | $ | 101.6 | | | $ | 109.8 | |
| Short-term lease costs | 3.0 | | | 3.4 | | | 3.5 | |
| Sublease income | (6.0) | | | (5.8) | | | (5.1) | |
| Variable lease costs | 38.7 | | | 36.0 | | | 37.6 | |
| Total | $ | 143.2 | | | $ | 135.2 | | | $ | 145.8 | |
The Company has a small population of subleases whereby it acts as a lessor and has recognized sublease income as noted in the table above. The impact of this portfolio is not material to the consolidated financial statements.
For the years ended December 31, 2025, 2024 and 2023, the Company recognized lease costs, net of sublease income, of $139.7 million, $131.4 million and $138.5 million, respectively, in Sales and marketing expenses and $3.5 million, $3.8 million and $7.3 million, respectively, in General and administrative expenses in the consolidated statements of operations.
Supplemental cash flow information related to leases was as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities: |
| Operating cash flows used in operating leases | $ | 128.5 | | | $ | 127.3 | | | $ | 126.9 | |
| Supplemental disclosure of non-cash leasing activities: | | | | | |
| ROU assets obtained in exchange for new operating lease liabilities | $ | 80.9 | | | $ | 68.2 | | | $ | 25.3 | |
The following table represents the weighted-average remaining lease term and discount rate for the Company’s operating leases:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term (years) | 5.1 | | 5.7 |
| Weighted average discount rate | 6.1 | % | | 5.7 | % |
Future undiscounted lease payments for the Company’s operating lease liabilities are as follows as of December 31, 2025 (in millions):
| | | | | |
| 2026 | $ | 124.0 | |
| 2027 | 111.0 | |
| 2028 | 96.4 | |
| 2029 | 78.3 | |
| 2030 | 52.5 | |
| Thereafter | 71.1 | |
| Total future lease payments | 533.3 | |
| Less: imputed interest | (79.8) | |
| Present value of lease liabilities | $ | 453.5 | |
As of December 31, 2025, the Company had additional operating leases that have not yet commenced with future undiscounted lease payments of approximately $25.8 million payable through 2038, which have been excluded from above.