Leases
Lessee
The following table presents our operating lease assets and liabilities:
| | | | | | | | | | | | | | |
| | As of |
| (in millions, except years and percentages) | | December 31, 2025 | | December 31, 2024 |
| Operating lease assets | | $ | 1,521.5 | | | $ | 1,503.8 | |
| Short-term operating lease liabilities | | 172.9 | | | 168.7 | |
| Non-current operating lease liabilities | | 1,374.7 | | | 1,351.8 | |
| | | | |
| Weighted-average remaining lease term | | 10.8 years | | 10.8 years |
| Weighted-average discount rate | | 6.4 | % | | 6.4 | % |
The components of our lease expenses were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Operating expenses | | $ | 445.8 | | | $ | 481.4 | | | $ | 497.7 | |
| Selling, general and administrative expenses | | 12.4 | | | 13.8 | | | 13.0 | |
| Variable costs | | 113.4 | | | 125.8 | | | 138.5 | |
| | | | | | |
| Cash paid for operating leases | | 461.5 | | | 485.3 | | | 486.6 | |
| Leased assets obtained in exchange for new operating lease liabilities | | 275.9 | | | 193.9 | | | 397.2 | |
In 2025, 2024 and 2023, sublease income related to office properties was immaterial.
As of December 31, 2025, minimum rental payments under operating leases are as follows:
| | | | | | | | |
| (in millions) | | Operating
Leases |
| 2026 | | $ | 264.9 | |
| 2027 | | 267.2 | |
| 2028 | | 224.7 | |
| 2029 | | 203.5 | |
| 2030 | | 182.7 | |
| 2031 and thereafter | | 1,104.2 | |
| Total operating lease payments | | 2,247.2 | |
| Less: Interest | | 699.6 | |
| Present value of lease liabilities | | $ | 1,547.6 | |
Lessor
We recorded rental income of $1,287.3 million in 2025, $1,336.9 million in 2024 and $1,349.3 million in 2023 in Revenues on our Consolidated Statement of Operations.
As of December 31, 2025, rental payments to be received under non-cancellable operating leases are as follows:
| | | | | | | | |
| (in millions) | | Rental Income |
| 2026 | | $ | 528.2 | |
| 2027 | | 48.1 | |
| 2028 | | 10.4 | |
| 2029 | | 6.5 | |
| 2030 | | 2.5 | |
| 2031 and thereafter | | 9.9 | |
| Total minimum payments | | $ | 605.6 | |
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.