Leases

12 Months Ended

Dec. 31, 2025

The Company records right-of-use (ROU) assets and lease liabilities for non-cancelable operating leases primarily for real estate and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Expense related to leases is recorded on a straight-line basis over the lease term, including rent holidays. The Company recognized operating lease expense of $99 million and $108 million during the years ended December 31, 2025 and 2024, respectively.

The Company considers the existence of options to extend or terminate leases in its analysis of the lease term for the purposes of measuring its ROU assets and lease liabilities. The renewal options are not included in the measurement of the ROU assets and lease liabilities unless the Company is reasonably certain to exercise the optional renewal periods.

The following table sets forth the ROU assets and lease liabilities ($ in millions):


	December 31, 2025		December 31, 2024
Assets

ROU assets (recorded within other long-term assets)	$	317	$	359

Liabilities
Short-term (recorded within accounts payable and accrued expenses)	$	146	$	158
Long-term (recorded within other long-term liabilities)	615		738
Total lease liabilities	$	761	$	896

Cash paid for amounts included in the measurement of lease liabilities, recorded as operating cash flows in the Consolidated Statements of Cash Flows, was $195 million and $227 million during the years ended December 31, 2025 and 2024, respectively. New operating leases commenced resulting in the recognition of ROU assets and lease liabilities of $65 million and $69 million during the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company had additional operating leases that have not yet commenced of $2 million. These operating leases will commence in 2026 with lease terms of approximately six years.

As of December 31, 2025, the weighted average remaining lease term for the Company was 6.9 years. The lease liabilities as of December 31, 2025, reflect a weighted average discount rate of 3.5%.

Lease payments over the next five years and thereafter are as follows ($ in millions):


	Lease Payments
2026	$	169
2027	137
2028	116
2029	99
2030	86
Thereafter	247
Total lease payments	854
Less: imputed interest	(93)
Total lease liabilities	$	761