10. Leases
Operating lease expense was $12 million, $12 million, and $11 million, in 2025, 2024, and 2023, respectively.
Cash paid for amounts included in the measurement of operating lease liabilities was $13 million in 2025, $13 million in 2024, and $11 million in 2023. Right-of-use assets recorded in exchange for executing new operating lease agreements were $5 million in 2025, $10 million in 2024, and $14 million in 2023.
Supplemental information related to leases is as follows:
December 31, 2025December 31, 2024
Weighted average remaining lease term (years)
4.164.49
Weighted average discount rate%%
Future lease payments for non-cancellable operating leases as of December 31, 2025, were as follows:
2026$12 
202711 
2028
2029
2030
Thereafter
Total future lease payments37
Less: Imputed interest(5)
Total lease liability$32 
At December 31, 2025, the Company had no leases entered into that had not yet commenced.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025

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.