Leases
The Company leases its facilities under non-cancelable lease agreements which expire between 2026 and 2037. Certain of these arrangements have free rent, escalating rent payment provisions, lease renewal options, and tenant allowances. Under such arrangements, the Company recognizes a ROU asset and lease liability on the consolidated balance sheets. Lease costs are recognized on a straight-line basis over the non-cancelable lease term.
During the years ended December 31, 2024 and 2025, the Company ceased use of and made available for sublease certain corporate office spaces. As a result, the Company determined that the asset groups, which primarily consist of the related operating lease right-of-use assets and leasehold improvements, were impaired, and recognized an impairment charge of $83 million and $11 million recorded as general and administrative expenses during the years ended December 31, 2024 and 2025, respectively. The fair value of the asset groups was estimated using an income-approach based on estimated future cash flows expected to be derived from the office spaces based on current sublease market rent. As of December 31, 2025, the Company was continuing its efforts to sublease some of the spaces.
The components of lease costs related to the Company’s operating leases included in the consolidated statements of operations for the periods presented were as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2023 | | 2024 | | 2025 |
| Operating lease costs | $ | 108 | | | $ | 103 | | | $ | 118 | |
| Short-term lease costs | 12 | | | 16 | | | 16 | |
| Sublease income | (3) | | | (2) | | | (5) | |
| Total lease costs | $ | 117 | | | $ | 117 | | | $ | 129 | |
Lease terms and discount rates for operating leases were as follows:
| | | | | | | | | | | |
| December 31, 2024 | | December 31, 2025 |
| Weighted-average remaining lease term (in years) | 7.45 | | 6.32 |
| Weighted-average discount rate | 6.79% | | 6.55% |
Supplemental cash flow and non-cash information was as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2023 | | 2024 | | 2025 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Operating cash flows for operating leases | $ | 113 | | | $ | 116 | | | $ | 125 | |
| | | | | |
| ROU assets obtained in exchange for new lease liabilities | | | | | |
| Operating leases | $ | 85 | | | $ | 81 | | | $ | 72 | |
As of December 31, 2025, the future minimum lease payments required under operating leases were as follows (in millions):
| | | | | | | | |
| Year Ending December 31, | | Amount |
| 2026 | | $ | 138 | |
| 2027 | | 117 | |
| 2028 | | 99 | |
| 2029 | | 86 | |
| 2030 | | 78 | |
| Thereafter | | 192 | |
| Total future minimum lease payments | | 710 | |
| | |
| Less: Imputed interest | | (138) | |
| Less: Tenant improvement receivable | | (6) | |
| Present value of future minimum lease payments | | $ | 566 | |
Future minimum sublease income as of December 31, 2025 was $42 million.