Leases and Property and Equipment
Leases | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 |
| Operating lease cost: | | | | |
| Operating lease cost | | $ | 239.3 | | | $ | 209.6 | |
| Variable lease cost | | 23.0 | | | 16.5 | |
| Short-term lease cost | | 3.9 | | | 3.9 | |
| Sublease income | | (6.0) | | | (0.9) | |
| Total Operating Lease Cost | | $ | 260.2 | | | $ | 229.1 | |
| Finance lease cost: | | | | |
| Depreciation of ROU assets | | $ | 57.3 | | | $ | 58.9 | |
| Interest | | 8.1 | | | 8.3 | |
| Total Finance Lease Cost | | $ | 65.4 | | | $ | 67.2 | |
| Total Lease Cost | | $ | 325.6 | | | $ | 296.3 | |
Future lease payments: | | | | | | | | | | | | | |
| | December 31 |
| | Operating Leases | | | Finance Leases |
| 2026 | | $ | 528.6 | | | | $ | 46.2 | |
| 2027 | | 446.2 | | | | 31.5 | |
| 2028 | | 354.9 | | | | 18.6 | |
| 2029 | | 277.5 | | | | 8.1 | |
| 2030 | | 193.5 | | | | 1.7 | |
| Thereafter | | 659.0 | | | | 0.7 | |
| Total lease payments | | 2,459.7 | | | | 106.8 | |
| Less: Interest | | 412.3 | | | | 2.3 | |
| Present Value of Lease Liabilities | | $ | 2,047.4 | | | | $ | 104.5 | |
Balance sheet classification of operating leases: | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Operating Lease ROU Assets | $ | 1,379.8 | | | $ | 1,043.6 | |
| Operating lease liability: | | | |
| Other current liabilities | $ | 430.4 | | | $ | 204.5 | |
| Long-term liability - operating leases | 1,617.0 | | | 814.2 | |
| Total Operating Lease Liability | $ | 2,047.4 | | | $ | 1,018.7 | |
At December 31, 2025 and 2024, office space and equipment operating leases had a weighted average remaining lease term of 4.8 and 6.2 years, respectively, and a weighted average discount rate of 3.8% and 3.9%, respectively.
Property and Equipment
Property and equipment: | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Property and equipment - owned | $ | 1,999.3 | | | $ | 1,520.3 | |
| Equipment under finance leases | 397.8 | | | 401.3 |
| Property and Equipment, Gross | 2,397.1 | | | 1,921.6 | |
| Accumulated depreciation | (1,386.8) | | | (1,096.9) | |
| Property and Equipment, Net | $ | 1,010.3 | | | $ | 824.7 | |
At December 31, 2025 and 2024, finance leases had a weighted average remaining lease term of 2.8 years and 2.6 years, respectively, and a weighted average discount rate of 8.7% and 7.3%, respectively.
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.