LEASES The Group’s lease arrangements for its offices, retail stores, data centers and marketing arrangements expire at various dates through 2039. Certain leases are cancelable upon notification by the Group to the landlord and others are renewable. Additionally, the Group subleases certain leases to third parties. Security deposits under letters of credit or cash deposited with banks as of December 31, 2025 and 2024 were $18 million and $18 million, respectively.
Substantially all leases are long-term operating leases for facilities with fixed payment terms between 1 and 15 years. The current portion of operating lease liabilities are presented within total current liabilities, and the non-current portion of operating lease liabilities are presented within total liabilities on the Consolidated Balance Sheets.
Lease Cost — The components of lease cost consisted of the following for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| ($ in millions) | 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 167 | | | $ | 155 | | | $ | 140 | |
| Short term lease cost | 21 | | | 15 | | | 13 | |
| Sublease income | (4) | | | (4) | | | (1) | |
| Total lease cost | $ | 184 | | | $ | 166 | | | $ | 152 | |
Lease Term and Discount Rate — The weighted-average remaining lease term (in years) and discount rate related to the operating leases consisted of the following as of December 31, 2025:
| | | | | |
| Year ended December 31, |
| 2025 |
| Weighted-average remaining lease term (years) | 5.58 |
| Weighted-average discount rate | 5.14 | % |
As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments, which equates to the rates of interest that it would pay to borrow funds, on a fully collateralized basis, over a similar term.
Maturity of Lease Liabilities — The present value of the Group’s operating leases consisted of the following as of December 31, 2025:
| | | | | |
| ($ in millions) | Year Ending
December 31 |
| 2026 | $ | 173 | |
| 2027 | 147 | |
| 2028 | 116 | |
| 2029 | 93 | |
| 2030 | 64 | |
| Thereafter | 137 | |
| Total undiscounted future cash flows | 730 | |
| Less: imputed interest | (124) | |
| Present value of undiscounted future cash flows | 606 | |
| Operating lease liabilities – current | 130 | |
| Operating lease liabilities – noncurrent | 476 | |
| Total operating lease liabilities | $ | 606 | |
Other Information — Supplemental cash flow and other information for the years ended December 31, 2025, 2024 and 2023 related to operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| For the year ended
December 31, |
| ($ in millions) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 167 | | | $ | 174 | | | $ | 133 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 94 | | | $ | 155 | | | $ | 73 | |