The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company intends to exercise a lease option at inception due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews new agreements to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates.

Components of leases are as follows (in millions):


	December 31,
	2025		2024
Current portion of lease liabilities:
Operating	$	71	$	72
Financing		30		30
Total	$	101	$	102

	December 31,
	2025		2024
Long-term portion of lease liability:
Operating	$	289	$	301
Financing		232		243
Total	$	521	$	544

Components of lease expense were as follows (in millions):


	Year Ended December 31,
	2025			2024			2023
Lease cost
Finance lease cost
Amortization of right-of-use assets	$	32		$	28		$	23
Interest on lease liabilities		12			10			10
Operating lease cost		90			90			85
Short-term lease cost		59			69			77
Sub-lease income		(8	)		(6	)		(8	)
Total	$	185		$	191		$	187

In addition to the above amounts, the Company recorded an operating lease right-of-use impairment charge of $30 million during the year ended December 31, 2025.

Supplemental information related to the Company’s leases is as follows (in millions):


	Year Ended December 31,
	2025			2024			2023
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	12		$	10		$	10
Operating cash flows - operating leases		90			90			85
Financing cash flows - finance leases		28			28			23
Right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	34		$	65		$	68
Finance lease liabilities		57			28			27

Weighted average remaining lease term at December 31, 2025:
Operating leases	10 years			11 years			10 years
Finance leases	16 years			16 years			16 years
Weighted average discount rate at December 31, 2025:
Operating leases		5.08	%		5.25	%		5.17	%
Finance leases		3.62	%		4.42	%		4.15	%

Future minimum lease commitments for leases with initial or remaining terms of one year or more at December 31, 2025, are payable as follows (in millions):


	Operating			Finance
2026	$	83		$	39
2027		66			32
2028		55			25
2029		42			20
2030		32			17
Thereafter		130			153
Total lease payments		408			286
Less: Interest		(48	)		(24	)
Present value of lease liabilities	$	360		$	262