11. LEASES
For the years ended December 31, 2025, 2024 and 2023, operating lease expense was $189.7 million, $191.3 million and $187.4 million, respectively, and variable and short-term lease expense was $49.8 million, $50.3 million and $44.5 million, respectively. In addition, $206.6 million and $169.6 million of Operating lease right-of-use assets were obtained in exchange for lease obligations during the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025, our total commitments related to finance leases was $33.7 million. Leases in which we sublet do not represent a significant portion of our leasing activity.
Minimum future lease payments due in each of the next five years and thereafter, as of December 31, 2025, are presented in the table below.
| | | | | | | | |
| (in millions) | | |
| 2026 | | $ | 198.1 | |
| 2027 | | 187.2 | |
| 2028 | | 155.0 | |
| 2029 | | 136.9 | |
| 2030 | | 116.7 | |
| Thereafter | | 320.4 | |
| Total future minimum lease payments | | $ | 1,114.3 | |
| Less imputed interest | | 173.2 | |
| Total | | $ | 941.1 | |
Other information related to operating leases is as follows.
| | | | | | | | |
| | December 31, 2025 |
| Weighted average remaining lease term | | 6.9 years |
| Weighted average discount rate | | 4.6 | % |
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.