Leases
Operating lease cost includes short-term leases and variable lease payments and approximates cash paid. Operating lease cost was $73, $67, and $63 in 2025, 2024, and 2023, respectively.
Operating lease right-of-use assets and lease liabilities in the Consolidated Balance Sheet were as follows:
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| December 31, | 2025 | | 2024 | | |
| Right-of-use assets classified in Other noncurrent assets | $ | 162 | | | $ | 155 | | | |
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Current portion of lease liabilities classified in Other current liabilities | $ | 42 | | | $ | 37 | | | |
| Long-term portion of lease liabilities classified in Other noncurrent liabilities and deferred credits | 121 | | | 119 | | | |
| Total lease liabilities | $ | 163 | | | $ | 156 | | | |
Future minimum contractual operating lease obligations were as follows at December 31, 2025: | | | | | | | |
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| 2026 | $ | 52 | | | |
| 2027 | 42 | | | |
| 2028 | 29 | | | |
| 2029 | 19 | | | |
| 2030 | 14 | | | |
| Thereafter | 40 | | | |
| Total lease payments | $ | 196 | | | |
| Less: Imputed interest | (33) | | | |
| Present value of lease liabilities | $ | 163 | | | |
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| December 31, | 2025 | | 2024 | | 2023 |
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 50 | | | $ | 66 | | | $ | 68 | |
| Weighted-average remaining lease term in years | 5.7 | | 5.9 | | 6.4 |
| Weighted-average discount rate | 5.4 | % | | 5.7 | % | | 5.9 | % |
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.