Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
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 Sheets December 31, 2025 December 31, 2024
Assets
Operating lease assets Other non-current assets $ 6  $ 10 
Total lease assets $ 6  $ 10 
Liabilities
Current
Operating lease liabilities Accrued expenses and other current liabilities $ 3  $ 3 
Non-current
Operating lease liabilities
Other non-current liabilities (a)
3  6 
Total lease liabilities $ 6  $ 9 
_____________________
(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, 2025 December 31, 2024
Weighted-average remaining lease term
Operating leases 2.6 years 3.3 years
Weighted-average discount rate
Operating leases 5.4 % 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 $ 4 
2027 4 
2028 1 
2029 1 
2030 — 
Thereafter — 
Total minimum lease payments 10 
Less: amount of lease payments representing interest 1 
Present value of future minimum lease payments 9 
Less: current obligations under leases 3 
Long-term lease obligations (a)
$ 6 
_____________________
(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,
2025 2024 2023
Operating activities
Cash payments related to operating and finance leases $ 5  $ 6  $ 6 
Financing activities
Cash payments related to finance leases —  39 
(a)
 5 
_____________________
(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,
2025 2024 2023
Operating lease expense $ 4  $ 5  $ 5 
Finance lease expense
Amortization of right-of-use assets —  4  4 
Interest expense —  1  2 
Leases
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 Sheets December 31, 2025 December 31, 2024
Assets
Operating lease assets Other non-current assets $ 6  $ 10 
Total lease assets $ 6  $ 10 
Liabilities
Current
Operating lease liabilities Accrued expenses and other current liabilities $ 3  $ 3 
Non-current
Operating lease liabilities
Other non-current liabilities (a)
3  6 
Total lease liabilities $ 6  $ 9 
_____________________
(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, 2025 December 31, 2024
Weighted-average remaining lease term
Operating leases 2.6 years 3.3 years
Weighted-average discount rate
Operating leases 5.4 % 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 $ 4 
2027 4 
2028 1 
2029 1 
2030 — 
Thereafter — 
Total minimum lease payments 10 
Less: amount of lease payments representing interest 1 
Present value of future minimum lease payments 9 
Less: current obligations under leases 3 
Long-term lease obligations (a)
$ 6 
_____________________
(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,
2025 2024 2023
Operating activities
Cash payments related to operating and finance leases $ 5  $ 6  $ 6 
Financing activities
Cash payments related to finance leases —  39 
(a)
 5 
_____________________
(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,
2025 2024 2023
Operating lease expense $ 4  $ 5  $ 5 
Finance lease expense
Amortization of right-of-use assets —  4  4 
Interest expense —  1  2