9. Leases
The components of lease cost recorded in the Consolidated Statements of Operations were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In millions) | | 2025 | | 2024 | | 2023 |
| Operating leases: | | | | | | |
| Operating lease cost | | $ | 915 | | | $ | 830 | | | $ | 751 | |
| Short-term lease cost | | 181 | | | 202 | | | 225 | |
| Variable lease cost | | 222 | | | 153 | | | 129 | |
Total operating lease cost(1) | | $ | 1,318 | | | $ | 1,185 | | | $ | 1,105 | |
| Finance leases: | | | | | | |
| Amortization of the right-of-use assets | | $ | 36 | | | $ | 30 | | | $ | 30 | |
| Interest on the lease liabilities | | 18 | | | 10 | | | 5 | |
| Total finance lease cost | | $ | 54 | | | $ | 40 | | | $ | 35 | |
| Total operating and finance lease cost | | $ | 1,372 | | | $ | 1,225 | | | $ | 1,140 | |
(1) Operating lease cost is primarily included in Direct operating expense in the Consolidated Statements of Operations.
The following amounts were recorded in the Consolidated Balance Sheets related to leases:
| | | | | | | | | | | | | | |
| | December 31, |
| (In millions) | | 2025 | | 2024 |
| Operating leases: | | | | |
| Operating lease assets | | $ | 2,563 | | | $ | 2,329 | |
| | | | |
| Current operating lease liabilities | | $ | 745 | | | $ | 647 | |
| Long-term operating lease liabilities | | 2,044 | | | 1,898 | |
| Total operating lease liabilities | | $ | 2,789 | | | $ | 2,545 | |
| | | | |
| Finance leases: | | | | |
| | | | |
| | | | |
| Property and equipment, net | | $ | 306 | | | $ | 239 | |
| | | | |
| Current debt | | $ | 45 | | | $ | 39 | |
| Long-term debt | | 281 | | | 237 | |
| Total finance lease liabilities | | $ | 326 | | | $ | 276 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (In millions) | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows for operating leases | | $ | 876 | | | $ | 791 | | | $ | 696 | |
| Operating cash flows for finance leases | | 18 | | | 10 | | | 5 | |
| Financing cash flows for finance leases | | 50 | | | 45 | | | 29 | |
| Right-of-use assets obtained in exchange for lease liabilities: | | | | | | |
Operating leases, including $166 and $52 from an acquisition in 2024 and 2023, respectively | | $ | 863 | | | $ | 815 | | | $ | 568 | |
Finance leases, including $83 and $1 from an acquisition in 2024 and 2023, respectively | | 74 | | | 211 | | | 10 | |
Supplemental weighted-average information for leases was as follows:
| | | | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Weighted-average remaining lease term | | | | |
| Operating leases | | 5.5 years | | 5.6 years |
| Finance leases | | 16.6 years | | 24.1 years |
| Weighted-average discount rate | | | | |
| Operating leases | | 5.1 | % | | 4.9 | % |
| Finance leases | | 5.6 | % | | 5.4 | % |
Maturities of lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | | | | | | | |
| (In millions) | | Finance Leases | | Operating Leases |
| 2026 | | $ | 68 | | | $ | 854 | |
| 2027 | | 51 | | | 706 | |
| 2028 | | 42 | | | 513 | |
| 2029 | | 34 | | | 348 | |
| 2030 | | 30 | | | 245 | |
| Thereafter | | 296 | | | 563 | |
| Total lease payments | | 521 | | | 3,229 | |
| Less: Interest | | (195) | | | (440) | |
| Present value of lease liabilities | | $ | 326 | | | $ | 2,789 | |
As of December 31, 2025, the Company had operating leases that have not yet commenced with future undiscounted lease payments of approximately $176 million. These operating leases will begin in 2026 and 2027, with initial lease terms ranging from four to ten years.
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.