Leases
We have operating leases for office space, data centers and other corporate assets that we utilize under lease arrangements.
The following table presents a summary of leases by balance sheet location as of the dates indicated (in millions):
| | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Balance Sheet Location | | 2025 | | 2024 |
| Assets | | | | | |
| Operating | Operating lease right-of-use (“ROU”) assets | | $ | 428 | | | $ | 427 | |
| | | | | |
| Liabilities | | | | | |
| Operating - current | Accrued expenses and other current liabilities | | $ | 119 | | | $ | 118 | |
| Operating - noncurrent | Operating lease liabilities | | 315 | | | 320 | |
| Total lease liabilities | | | $ | 434 | | | $ | 438 | |
The following table presents components of lease expense for the periods indicated (in millions):
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, |
| Statement of Income Location | | 2025 | | 2024 | | 2023 |
Operating lease costs (1) | Cost of net revenues, Sales and marketing, Product development and General and administrative expenses | | $ | 155 | | | $ | 147 | | | $ | 128 | |
(1)Includes variable lease payments and sublease income that were immaterial for the years ended December 31, 2025, 2024 and 2023.
The following table presents the maturity of lease liabilities under our non-cancelable operating leases as of the date indicated (in millions):
| | | | | | | |
| December 31, 2025 | | |
| 2026 | $ | 137 | | | |
| 2027 | 121 | | | |
| 2028 | 87 | | | |
| 2029 | 35 | | | |
| 2030 | 30 | | | |
| Thereafter | 82 | | | |
| Total lease payments | 492 | | | |
| Less interest | (58) | | | |
| Present value of lease liabilities | $ | 434 | | | |
As of December 31, 2025, we have non-cancellable operating leases for offices that have not commenced with immaterial fixed lease payment obligations. We are not involved in the construction or design of underlying assets.
Rent expense for the years ended December 31, 2025, 2024 and 2023 totaled $161 million, $153 million and $137 million, respectively. Rent expense includes operating lease costs as well as expense for non-lease components such as common area maintenance.
The following table presents supplemental information related to our leases included on our consolidated balance sheet as of the dates indicated:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Weighted average remaining lease term | | | | |
| Operating leases | | 4.80 years | | 4.40 years |
| | | | |
| Weighted average discount rate | | | | |
| Operating leases | | 4.88 | % | | 4.91 | % |
The following table presents supplemental information related to our leases for the periods indicated (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | | 2025 | | 2024 | | 2023 |
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
Operating cash flows from operating leases | | $ | 148 | | | $ | 147 | | | $ | 154 | |
| | | | | | |
| ROU assets obtained in exchange for new lease obligations: | | | | | | |
| Operating leases | | $ | 134 | | | $ | 64 | | | $ | 102 | |