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LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES
F. LEASES

We have operating and finance leases primarily for corporate offices, manufacturing facilities, warehouses, vehicles, and equipment. Our leases have remaining lease terms up to 17 years, some of which may include one or more renewal options with terms to extend the lease for up to an additional 15 years, and some of which may include options to terminate the leases prior to their expiration.
The components of lease cost included in income before income taxes were as follows, in millions:
Year Ended December 31,
 202520242023
Operating lease cost$63 $64 $61 
Short-term lease cost8 9 10 
Variable lease cost6 5 7 
Finance lease cost:
Amortization of ROU assets2 3 3 
Interest on lease liabilities— 1 1 
F. LEASES (Continued)

Supplemental cash flow information related to leases was as follows, in millions:
Year Ended December 31,
 202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$60 $54 $50 
Operating cash flows for finance leases— 1 1 
Financing cash flows for finance leases2 3 3 
 
ROU assets obtained in exchange for new lease obligations:
Operating leases (A)
42 34 41 
(A)Includes $6 million of ROU assets obtained in exchange for new lease obligations related to the acquisition of Sauna360 in 2023.

Certain other information related to leases was as follows:
At December 31,
202520242023
Weighted-average remaining lease term:
Operating leases9 years9 years10 years
Finance leases6 years7 years8 years
 
Weighted-average discount rate:
Operating leases5.3 %5.2 %5.2 %
Finance leases3.2 %3.2 %3.3 %
Supplemental balance sheet information related to leases was as follows, in millions:
At December 31,
20252024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Property and equipment, net$— $13 $— $16 
Notes payable— 2 — 3 
Accrued liabilities47 — 43 — 
Long-term debt— 12 — 14 
Gross ROU assets under finance leases recorded within property and equipment, net was $31 million and $41 million at December 31, 2025 and 2024, respectively. Accumulated amortization associated with these leases was $17 million and $25 million at December 31, 2025 and 2024, respectively.
F. LEASES (Concluded)
At December 31, 2025, future maturities of lease liabilities were as follows, in millions:
Operating LeasesFinance Leases
Year ending December 31,
2026$60 $2 
202750 2 
202841 2 
202934 2 
203028 3 
Thereafter124 4 
Total lease payments336 16 
Less: imputed interest(68)(2)
Total$268 $14 
LEASES
F. LEASES

We have operating and finance leases primarily for corporate offices, manufacturing facilities, warehouses, vehicles, and equipment. Our leases have remaining lease terms up to 17 years, some of which may include one or more renewal options with terms to extend the lease for up to an additional 15 years, and some of which may include options to terminate the leases prior to their expiration.
The components of lease cost included in income before income taxes were as follows, in millions:
Year Ended December 31,
 202520242023
Operating lease cost$63 $64 $61 
Short-term lease cost8 9 10 
Variable lease cost6 5 7 
Finance lease cost:
Amortization of ROU assets2 3 3 
Interest on lease liabilities— 1 1 
F. LEASES (Continued)

Supplemental cash flow information related to leases was as follows, in millions:
Year Ended December 31,
 202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$60 $54 $50 
Operating cash flows for finance leases— 1 1 
Financing cash flows for finance leases2 3 3 
 
ROU assets obtained in exchange for new lease obligations:
Operating leases (A)
42 34 41 
(A)Includes $6 million of ROU assets obtained in exchange for new lease obligations related to the acquisition of Sauna360 in 2023.

Certain other information related to leases was as follows:
At December 31,
202520242023
Weighted-average remaining lease term:
Operating leases9 years9 years10 years
Finance leases6 years7 years8 years
 
Weighted-average discount rate:
Operating leases5.3 %5.2 %5.2 %
Finance leases3.2 %3.2 %3.3 %
Supplemental balance sheet information related to leases was as follows, in millions:
At December 31,
20252024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Property and equipment, net$— $13 $— $16 
Notes payable— 2 — 3 
Accrued liabilities47 — 43 — 
Long-term debt— 12 — 14 
Gross ROU assets under finance leases recorded within property and equipment, net was $31 million and $41 million at December 31, 2025 and 2024, respectively. Accumulated amortization associated with these leases was $17 million and $25 million at December 31, 2025 and 2024, respectively.
F. LEASES (Concluded)
At December 31, 2025, future maturities of lease liabilities were as follows, in millions:
Operating LeasesFinance Leases
Year ending December 31,
2026$60 $2 
202750 2 
202841 2 
202934 2 
203028 3 
Thereafter124 4 
Total lease payments336 16 
Less: imputed interest(68)(2)
Total$268 $14