LEASES The following table presents the carrying values of our leases and the classification on our Balance Sheet.
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| ($ in millions) | Balance Sheet Classification | | At December 31, 2025 | | At December 31, 2024 |
| Operating lease assets | Other assets | | $ | 57 | | | $ | 74 | |
| Finance lease assets | Property and equipment, net | | 164 | | | 168 | |
| | | $ | 221 | | | $ | 242 | |
| | | | | |
| Operating lease liabilities | Accrued liabilities | | $ | 73 | | | $ | 94 | |
| Finance lease liabilities | Debt, net | | 198 | | | 199 | |
| | | $ | 271 | | | $ | 293 | |
The following table presents the lease costs and the classification on our Income Statements for 2025, 2024, and 2023.
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| ($ in millions) | Income Statement Classification | | 2025 | | 2024 | | 2023 |
| Operating lease cost | Marketing and sales expense
General and administrative expense | | $ | 16 | | | $ | 19 | | | $ | 31 | |
| Finance lease cost | | | | | | | |
| Amortization of right-of-use assets | Depreciation and amortization | | 13 | | | 12 | | | 10 | |
| Interest on lease liabilities | Financing expense | | 13 | | | 13 | | | 11 | |
| Variable lease cost | Marketing and sales expense | | 2 | | | 2 | | | 3 | |
| | | $ | 44 | | | $ | 46 | | | $ | 55 | |
The following table presents the maturity of our operating and finance lease liabilities as of December 31, 2025.
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| ($ in millions) | Operating Leases | | Finance Leases | | Total |
| 2026 | $ | 23 | | | $ | 18 | | | $ | 41 | |
| 2027 | 16 | | | 16 | | | 32 | |
| 2028 | 12 | | | 14 | | | 26 | |
| 2029 | 10 | | | 13 | | | 23 | |
| 2030 | 7 | | | 13 | | | 20 | |
| Thereafter | 16 | | | 448 | | | 464 | |
| Total lease payments | 84 | | | 522 | | | 606 | |
| Less: Imputed interest | (11) | | | (324) | | | (335) | |
| $ | 73 | | | $ | 198 | | | $ | 271 | |
Lease Term and Discount Rate
The following table presents additional information about our lease obligations.
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| At December 31, 2025 | | At December 31, 2024 |
| Weighted-average remaining lease term | | | |
| Operating leases | 5.6 years | | 6.2 years |
| Finance leases | 34.4 years | | 35.1 years |
| Weighted-average discount rate | | | |
| Operating leases | 6.5% | | 6.5% |
| Finance leases | 6.5% | | 6.5% |
Other Information
The following table presents supplemental cash flow information for 2025, 2024, and 2023.
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| ($ in millions) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in measurement of lease liabilities | | | | | |
| Operating cash flows for finance leases | $ | 13 | | | $ | 14 | | | $ | 7 | |
| Operating cash flows for operating leases | $ | 23 | | | $ | 24 | | | $ | 33 | |
| Financing cash flows for finance leases | $ | 7 | | | $ | 6 | | | $ | 5 | |
| | | | | |
| Right-of-use assets obtained in exchange for lease obligations | | | | | |
| Operating leases | $ | 10 | | | $ | 23 | | | $ | 31 | |
| Finance leases | $ | 7 | | | $ | 16 | | | $ | 88 | |
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.