Leases
Assets recorded as property and equipment under finance leases, and the related accumulated depreciation balances as of December 31, 2024 and 2025 were as follows:
| | | | | | | | | | | |
| December 31, 2024 | | December 31, 2025 |
| (In millions) | |
| Computers and equipment | $ | 128.8 | | | $ | 78.2 | |
| Buildings | 291.0 | | | 297.0 | |
| Less: Accumulated depreciation | (115.0) | | | (110.5) | |
| Net book value of property and equipment under finance leases | $ | 304.8 | | | $ | 264.7 | |
The components of operating and finance lease expense for the years ended December 31, 2023, 2024 and 2025 were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions) | 2023 | | 2024 | | 2025 |
| Operating lease expense: | | | | | |
| Fixed lease expense | $ | 63.3 | | | $ | 66.7 | | | $ | 66.3 | |
| Variable lease expense | 21.7 | | | 22.2 | | | 24.4 | |
| Short-term lease expense | 1.2 | | | 1.2 | | | 1.9 | |
| Sublease income | (0.8) | | | — | | | (0.1) | |
| Total operating lease expense | $ | 85.4 | | | $ | 90.1 | | | $ | 92.5 | |
| Finance lease expense: | | | | | |
| Depreciation of finance lease assets | $ | 55.8 | | | $ | 31.8 | | | $ | 32.2 | |
| Interest expense on finance lease liabilities | 26.6 | | | 25.4 | | | 28.0 | |
| Total finance lease expense | $ | 82.4 | | | $ | 57.2 | | | $ | 60.2 | |
Supplemental operating cash flow information related to operating and finance leases for the years ended December 31, 2023, 2024 and 2025 were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (In millions) | 2023 | | 2024 | | 2025 |
| Cash payments for lease liabilities included within operating activities: | | | | | |
| Operating leases | $ | (80.2) | | | $ | (89.5) | | | $ | (74.6) | |
| Finance leases | (29.2) | | | (28.9) | | | (28.6) | |
| | | | | |
| Operating leases: | | | | | |
| New lease assets obtained in exchange for lease liabilities | $ | 43.1 | | | $ | 33.3 | | | $ | 17.3 | |
Modified/renewed lease assets obtained in exchange for lease liabilities | 15.5 | | | 44.8 | | | 51.6 | |
| Total lease assets obtained in exchange for lease liabilities | $ | 58.6 | | | $ | 78.1 | | | $ | 68.9 | |
As of December 31, 2024 and 2025, the weighted average remaining lease term and weighted average discount rate of our operating and finance leases, respectively, were as follows:
| | | | | | | | | | | |
| December 31, 2024 | | December 31, 2025 |
| |
| Weighted average remaining lease term (in years) | | | |
| Operating leases | 4 | | 4 |
| Finance leases | 11 | | 10 |
| Weighted average discount rate | | | |
| Operating leases | 6.3 | % | | 6.1 | % |
| Finance leases | 7.9 | % | | 8.1 | % |
Future lease payments under operating and finance leases as of December 31, 2025 are as follows:
| | | | | | | | | | | |
| (In millions) | Operating leases (1) | | Finance leases (1) |
| Year ending: | | | |
| 2026 | $ | 63.4 | | | $ | 72.2 | |
| 2027 | 35.5 | | | 66.2 | |
| 2028 | 22.5 | | | 39.5 | |
| 2029 | 13.1 | | | 33.0 | |
| 2030 | 9.4 | | | 33.8 | |
| Thereafter | 11.5 | | | 244.7 | |
| Total future lease payments | 155.4 | | | 489.4 | |
| Less amount representing interest | (16.5) | | | (143.7) | |
| Total lease liability | $ | 138.9 | | | $ | 345.7 | |
(1) There are no material finance or operating leases that have not yet commenced.
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.