Leases

3 Months Ended

Mar. 31, 2026

Note 5. Leases

We have operating leases for our corporate headquarters located in Memphis, Tennessee, a collaboration center located in Scottsdale, Arizona and a technology collaboration center in Pune, India. We also continue to lease certain office space in other geographies, which we have either exited or subleased. Our leases have remaining lease terms ranging from one year to 9 years, some of which include options to extend the leases for up to five years.

The weighted-average remaining lease term and weighted-average discount rate related to our operating leases are as follows:


	As of
	March 31,			December 31,
	2026			2025
Weighted-average remaining lease term (years)		8			8
Weighted-average discount rate		6.6	%		6.6	%

We recognized operating lease expense of less than $1 million for each of the three months ended March 31, 2026 and 2025. These expenses are included in selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

Supplemental statement of financial position information related to our operating lease liabilities is as follows:


	As of
	March 31,		December 31,
(In millions)	2026		2025
Other accrued liabilities	$	3	$	3
Operating lease liabilities		17		18
Total operating lease liabilities	$	20	$	20

Supplemental cash flow information related to our operating leases is as follows:


	Three Months Ended
	March 31,
(In millions)	2026		2025
Cash paid on operating lease liabilities(1)	$	1	$	1

(1)

Amount is presented net of cash provided from sublease income.

The following table presents the maturities of our operating lease liabilities as of March 31, 2026:


(In millions)
2026 (remainder)(1)		2
2027(1)		3
2028		3
2029		3
2030		3
Thereafter		10
Total future lease payments(1)		23
Less imputed interest		(5	)
Total operating lease liabilities(1)	$	18

(1)

Amount is presented net of future sublease income totaling $1 million, which relates to the remainder of the year ending December 31, 2026 and the year ending December 31, 2027.