Note 5—Leases

Our total operating lease costs were $57.5 million, $58.0 million and $66.6 million during the years ended December 31, 2025, 2024 and 2023, respectively. Cash paid for amounts included in operating lease liabilities was $56.9 million, $60.7 million and $69.3 million during the years ended December 31, 2025, 2024 and 2023, respectively, and is included in operating cash flows. Total right-of-use assets obtained in exchange for operating lease liabilities was $82.5 million and $26.9 million for the years ended December 31, 2025 and 2024, respectively. Our weighted-average remaining lease term and weighted-average discount rates as of December 31, 2025 were 6.3 years and 5.6%, respectively. Our weighted-average remaining lease term and weighted-average discount rates as of December 31, 2024 were 6.3 years and 5.3%, respectively.

Lease liabilities as of December 31, 2025 are as follows (in millions):

Maturity of Lease Liabilities

 

 

 

2026

 

$

60.4

 

2027

 

 

51.7

 

2028

 

 

48.0

 

2029

 

 

42.1

 

2030

 

 

37.2

 

Thereafter

 

 

72.3

 

Total lease payments

 

$

311.7

 

Less: interest

 

 

(51.1

)

Present value of lease liabilities

 

$

260.6

 

We have certain lease agreements with our unconsolidated real estate joint ventures. We recognized operating lease expense of $1.3 million in each of the years ended December 31, 2025, 2024 and 2023, related to these lease agreements.

We have certain sublease agreements in place with third parties to lease portions of our office space. In addition, we serve as a lessor in other lease agreements for real estate and storage facilities. Total gross sublease and other rental income recognized for the years ended December 31, 2025, 2024 and 2023 was approximately $10.1 million, $7.3 million and $6.3 million, respectively.

Lease payments to be received as of December 31, 2025 are as follows (in millions):

Lease Payments to be Received

 

 

 

2026

 

$

9.6

 

2027

 

 

7.4

 

2028

 

 

6.6

 

2029

 

 

5.1

 

2030

 

 

4.8

 

Thereafter

 

 

7.7

 

Total lease payments

 

$

41.2

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 28, 2020
2017Feb 28, 2018
2016Feb 28, 2017
2015Feb 29, 2016

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.