LeasesWe conduct certain operations in leased facilities and also lease a portion of our data processing and other equipment. In addition, certain long-term supply agreements to purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require us to pay real estate taxes, insurance and maintenance costs.
Our leases are included as a component of the following balance sheet lines: | | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Other long-term assets | $ | 729 | | | $ | 786 | |
| |
| | |
| Accrued expenses and other liabilities | $ | 119 | | | $ | 118 | |
| Other long-term liabilities | 612 | | | 663 | |
Details of our operating leases are as follows: | | | | | | | | | | | | | | | | | |
| For Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Lease cost related to lease liabilities | $ | 102 | | | $ | 85 | | | $ | 73 | |
| Variable lease cost | 60 | | | 64 | | | 54 | |
| | | | | |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for lease cost | $ | 80 | | | $ | 65 | | | $ | 65 | |
| | | | | |
| Lease assets obtained in exchange for new lease liabilities | $ | 26 | | | $ | 241 | | | $ | 285 | |
As of December 31, 2025, we had committed to make the following minimum payments under our noncancelable operating leases: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | | Total |
| Lease payments | $ | 122 | | | $ | 110 | | | $ | 97 | | | $ | 85 | | | $ | 82 | | | $ | 424 | | | $ | 920 | |
| Imputed lease interest | | | | | | | | | | | | | (189) | |
| Total lease liabilities | | | | | | | | | | | | | $ | 731 | |
The weighted average remaining lease term was 10.1 years and 10.8 years as of December 31, 2025 and 2024, respectively. The weighted average discount rate was 4.60% and 4.53% as of December 31, 2025 and 2024, 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.