Leases
The Company has operating leases for corporate offices, data centers, motor vehicles and certain equipment, many of which contain renewal and escalation clauses. These operating leases primarily expire at various dates through 2037 with options to cancel certain leases at various intervals. The Company also has finance leases for offices and lab spaces that expire at various dates through 2048.

The components of lease expense were as follows:
Year Ended December 31,
(in millions)
Classification
202520242023
Operating lease cost (1)
Selling, general and administrative expenses
$160 $158 $160 
Finance lease cost (1)
Depreciation and amortization, and Interest expense18 18 18 
Total lease cost
$178 $176 $178 
(1) Includes short-term and variable lease costs, which are immaterial.

Other information related to leases was as follows:
Year Ended December 31,
(in millions)202520242023
Supplemental Cash Flow:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$157 $160 $175 
Operating cash flows for finance leases$8 $$
Financing cash flows for finance leases$5 $$
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$133 $58 $59 
Weighted Average Remaining Lease Term:
Operating leases
5.35 years4.58 years4.61 years
Finance leases
18.74 years19.73 years20.67 years
Weighted Average Discount Rate:
Operating leases
5.24%4.57%3.81 %
Finance leases
3.90%3.90%3.88 %
Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:
(in millions)Operating LeasesFinance Leases
2026$107 $13 
202782 14 
202859 14 
202938 14 
203026 15 
Thereafter51 256 
Total future minimum lease payments363 326 
Less imputed interest(45)(108)
Total$318 $218 
Reported as of December 31, 2025:
Other current liabilities$93 $
Operating lease liabilities225 — 
Other liabilities— 212 
Total$318 $218 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 15, 2023
2021Feb 16, 2022
2020Feb 12, 2021
2019Feb 18, 2020
2018Feb 19, 2019
2017Feb 16, 2018
2016Feb 16, 2017
2015Feb 11, 2016

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.