18. LEASES
The Company leases property and equipment primarily under operating leases. For leases with terms greater than one year, the Company records the related asset and obligation at the present value of lease payments over the term. The Company does not separate lease and non-lease components of equipment leases.
In the fourth quarter of 2024, the Company purchased the property for its corporate headquarters which was previously accounted for as a finance lease. See Note 6 - Property and Equipment, net for more details.
The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets.
Classification on the Balance SheetsDecember 31, 2025December 31, 2024
Assets
Operating lease assetsOther non-current assets$$10 
Total lease assets$$10 
Liabilities
Current
Operating lease liabilitiesAccrued expenses and other current liabilities$$
Non-current
Operating lease liabilities
Other non-current liabilities (a)
Total lease liabilities$$
_____________________
(a)As of December 31, 2025, $3 million of operating lease liabilities relating to a vacated leased facility was recorded to a restructuring liability reported within other non-current liabilities on the Consolidated Balance Sheets.
The table below presents the remaining lease term and discount rates for finance and operating leases.
December 31, 2025December 31, 2024
Weighted-average remaining lease term
Operating leases2.6 years3.3 years
Weighted-average discount rate
Operating leases5.4%5.4%
Finance leases%4.5%

Undiscounted Cash Flows
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Company’s Consolidated Balance Sheet as of December 31, 2025.
2026$
2027
2028
2029
2030— 
Thereafter— 
Total minimum lease payments10 
Less: amount of lease payments representing interest
Present value of future minimum lease payments
Less: current obligations under leases
Long-term lease obligations (a)
$
_____________________
(a)As of December 31, 2025, $3 million of operating lease liabilities relating to a vacated leased facility was recorded to a restructuring liability reported within other non-current liabilities on the Consolidated Balance Sheets.
Other Information
The Company recorded the following related to leases on the Consolidated Financial Statements:
Consolidated Statements of Cash Flows:
Year Ended December 31,
202520242023
Operating activities
Cash payments related to operating and finance leases$$$
Financing activities
Cash payments related to finance leases— 39 
(a)
_____________________
(a)2024 finance lease payments include $33 million relating to the purchase of the Company's corporate headquarters.


Consolidated Statements of Income:
Year Ended December 31,
202520242023
Operating lease expense$$$
Finance lease expense
Amortization of right-of-use assets— 
Interest expense— 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2020Feb 12, 2021

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.