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, as indicated below, either exited or subleased. Our leases have remaining lease terms ranging from three years to 10 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
	June 30,			December 31,
	2025			2024
Weighted-average remaining lease term (years)		8			9
Weighted-average discount rate		6.5	%		6.5	%

We recognized operating lease expense of less than $1 million for each of the three months ended June 30, 2025 and 2024 and $1 million for each of the six months ended June 30, 2025 and 2024. 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
	June 30,		December 31,
(In millions)	2025		2024
Other accrued liabilities	$	2	$	2
Operating lease liabilities		19		20
Total operating lease liabilities	$	21	$	22

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


	Six Months Ended
	June 30,
(In millions)	2025		2024
Cash paid on operating lease liabilities(1)	$	2	$	2
Right-of-use assets obtained in exchange for lease obligations		—		7

(1)

Amount is presented net of cash provided from sublease income.

In conjunction with the operating leases of our corporate headquarters located in Memphis, Tennessee, and our collaboration center located in Scottsdale, Arizona, we recognized $2 million in tenant improvement allowances as of June 30, 2024, which is a non-cash investing activity.

The following table presents the maturities of our operating lease liabilities as of June 30, 2025:


(In millions)
2025 (remainder)(1)		1
2026(1)		3
2027		4
2028		3
2029		3
Thereafter		13
Total future lease payments(1)		26
Less imputed interest		(6	)
Total operating lease liabilities(1)	$	20

(1)

Amount is presented net of future sublease income totaling $1 million, which relates to the remainder of the year ending December 31, 2025 and the year ending December 31, 2026.