LEASESA summary of the lease classification on our consolidated balance sheet as of December 31, 2025 and 2024 follows: | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | |
| Assets | | | | | | | | | |
| Operating right-of-use lease assets | Other assets | $ | 208 | | | $ | 232 | | | | | | |
| Finance lease assets | Property and equipment, net | 318 | | | 294 | | | | | | |
| Total leased assets | | $ | 526 | | | $ | 526 | | | | | | |
| | | | | | | | | |
| Liabilities | | | | | | | | | |
| Current | | | | | | | | | |
| Operating | Other accrued liabilities | $ | 48 | | | $ | 55 | | | | | | |
| Finance | Notes payable and current maturities of long-term debt | 15 | | | 13 | | | | | | |
| Long-term | | | | | | | | | |
| Operating | Other long-term liabilities | 177 | | | 189 | | | | | | |
| Finance | Long-term debt, net of current maturities | 278 | | | 249 | | | | | | |
| Total lease liabilities | | $ | 518 | | | $ | 506 | | | | | | |
A summary of the lease cost reflected in our consolidated statements of income for the years ended December 31, 2025 and 2024 follows: | | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| Operating lease cost | | | | |
| Fixed lease cost | Cost of operations | $ | 62 | | | $ | 50 | |
| Short-term lease cost | Cost of operations | 86 | | | 105 | |
| Variable lease cost | Cost of operations | 26 | | | 26 | |
| Finance lease cost | | | | |
| Amortization of leased assets | Depreciation, depletion and amortization | 16 | | | 17 | |
| Interest on lease liabilities | Interest expense | 11 | | | 9 | |
| Variable lease cost | Interest expense | 25 | | | 26 | |
| Total lease cost | | $ | 226 | | | $ | 233 | |
During the years ended December 31, 2025 and 2024, we recognized changes in our operating right-of-use lease liabilities and assets, resulting from the recognition of non-cash lease expense of $47 million and $46 million, respectively.
As of December 31, 2025, maturities for operating and finance lease liabilities were as follows: | | | | | | | | | | | | | | | | | |
| Operating Leases | | Finance Leases | | Total |
| 2026 | $ | 59 | | | $ | 23 | | | $ | 82 | |
| 2027 | 50 | | | 23 | | | 73 | |
| 2028 | 42 | | | 23 | | | 65 | |
| 2029 | 32 | | | 22 | | | 54 | |
| 2030 | 22 | | | 20 | | | 42 | |
| Thereafter | 43 | | | 374 | | | 417 | |
| Total lease payments | 248 | | | 485 | | | 733 | |
| Less: interest | (23) | | | (192) | | | (215) | |
| Present value of lease liabilities | $ | 225 | | | $ | 293 | | | $ | 518 | |
A summary of the weighted-average remaining lease term and weighted-average discount rate as of December 31, 2025 and 2024 follows: | | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| Weighted-average remaining lease term (years) | | | | |
| Operating leases | | 5.7 | | 6.1 |
| Finance leases | | 26.0 | | 27.8 |
| Weighted-average discount rate | | | | |
| Operating leases | | 3.7 | % | | 3.3 | % |
| Finance leases | | 4.2 | % | | 4.3 | % |
Supplemental cash flow and other non-cash information for the years ended December 31, 2025, 2024, and 2023 follow:
| | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating cash flows from operating leases | | $ | 174 | | | $ | 181 | | | $ | 177 | |
| Operating cash flows from finance leases | | $ | 36 | | | $ | 35 | | | $ | 31 | |
| Financing cash flows from finance leases | | $ | 12 | | | $ | 10 | | | $ | 12 | |
| Leased assets obtained in exchange for new operating lease liabilities | | $ | 45 | | | $ | 44 | | | $ | 33 | |
| Leased assets obtained in exchange for new finance lease liabilities | | $ | 44 | | | $ | 25 | | | $ | 17 | |
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.