v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
Leases as Lessor

The components of revenue from leases were as follows:
(In millions)
202520242023
Operating leases
Lease income related to ChoiceLease (1)
$1,606 $1,551 $1,483 
Lease income related to commercial rental (2)
$883 $928 $1,123 
 
Sales-type leases
Interest income related to net investment in leases$90 $75 $56 
 
Variable lease income excluding commercial rental (1) (2)
$292 $304 $308 
________________________ 
(1)In 2024, amounts have been revised.
(2)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.
The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:
 December 31,
(In millions)
20252024
Net investment in the lease - lease payment receivable$860 $818 
Net investment in the lease - unguaranteed residual value in assets54 49 
914 867 
Estimated loss allowance(5)(5)
Total$909 $862 

Maturities of sales-type lease receivables as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$261 
2027225 
2028207 
2029159 
2030115 
Thereafter136 
Total undiscounted cash flows1,103 
Present value of lease payments (recognized as lease receivables)(860)
Difference between undiscounted cash flows and discounted cash flows$243 
Operating lease payments expected to be received as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$1,321 
20271,059 
2028838 
2029641 
2030433 
Thereafter310 
Total undiscounted cash flows$4,602 
Leases as Lessee

The components of lease expense were as follows:
(In millions)202520242023
Finance lease cost
Amortization of right-of-use-assets$37 $20 $15 
Interest on lease liabilities6 3 2 
Operating lease cost381 374 271 
Short-term lease and other13 8 10 
Variable lease cost64 54 50 
Sublease income(14)(29)(41)
Total lease cost$487 $430 $307 
Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:
 December 31,
2025
2024
(In millions)
OperatingFinanceOperatingFinance
Noncurrent assets
$1,000 $112 $1,055 $75 
Current liabilities
$303 $35 $302 $22 
Noncurrent liabilities
$732 $78 $804 $54 


 December 31,
 20252024
Weighted-average remaining lease term
Operating4 years5 years
Finance4 years4 years
Weighted-average discount rate
Operating5.5 %5.4 %
Finance4.9 %5.1 %
Maturities of operating and finance lease liabilities were as follows (in millions):
Operating Leases
Finance Leases
 
Years ending December 31,
Total
2026$349 $40 $389 
2027289 34 323 
2028208 26 234 
2029124 15 139 
203081 7 88 
Thereafter111 2 113 
Total lease payments1,162 124 1,286 
Less: Imputed Interest(127)(11)(138)
Present value of lease liabilities$1,035 $113 $1,148 
________________________ 
Note: Amounts may not be additive due to rounding.
As of December 31, 2025, we have entered into $34 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2026 with lease terms of generally 10 years
LEASES LEASES
Leases as Lessor

The components of revenue from leases were as follows:
(In millions)
202520242023
Operating leases
Lease income related to ChoiceLease (1)
$1,606 $1,551 $1,483 
Lease income related to commercial rental (2)
$883 $928 $1,123 
 
Sales-type leases
Interest income related to net investment in leases$90 $75 $56 
 
Variable lease income excluding commercial rental (1) (2)
$292 $304 $308 
________________________ 
(1)In 2024, amounts have been revised.
(2)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.
The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:
 December 31,
(In millions)
20252024
Net investment in the lease - lease payment receivable$860 $818 
Net investment in the lease - unguaranteed residual value in assets54 49 
914 867 
Estimated loss allowance(5)(5)
Total$909 $862 

Maturities of sales-type lease receivables as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$261 
2027225 
2028207 
2029159 
2030115 
Thereafter136 
Total undiscounted cash flows1,103 
Present value of lease payments (recognized as lease receivables)(860)
Difference between undiscounted cash flows and discounted cash flows$243 
Operating lease payments expected to be received as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$1,321 
20271,059 
2028838 
2029641 
2030433 
Thereafter310 
Total undiscounted cash flows$4,602 
Leases as Lessee

The components of lease expense were as follows:
(In millions)202520242023
Finance lease cost
Amortization of right-of-use-assets$37 $20 $15 
Interest on lease liabilities6 3 2 
Operating lease cost381 374 271 
Short-term lease and other13 8 10 
Variable lease cost64 54 50 
Sublease income(14)(29)(41)
Total lease cost$487 $430 $307 
Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:
 December 31,
2025
2024
(In millions)
OperatingFinanceOperatingFinance
Noncurrent assets
$1,000 $112 $1,055 $75 
Current liabilities
$303 $35 $302 $22 
Noncurrent liabilities
$732 $78 $804 $54 


 December 31,
 20252024
Weighted-average remaining lease term
Operating4 years5 years
Finance4 years4 years
Weighted-average discount rate
Operating5.5 %5.4 %
Finance4.9 %5.1 %
Maturities of operating and finance lease liabilities were as follows (in millions):
Operating Leases
Finance Leases
 
Years ending December 31,
Total
2026$349 $40 $389 
2027289 34 323 
2028208 26 234 
2029124 15 139 
203081 7 88 
Thereafter111 2 113 
Total lease payments1,162 124 1,286 
Less: Imputed Interest(127)(11)(138)
Present value of lease liabilities$1,035 $113 $1,148 
________________________ 
Note: Amounts may not be additive due to rounding.
As of December 31, 2025, we have entered into $34 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2026 with lease terms of generally 10 years
LEASES LEASES
Leases as Lessor

The components of revenue from leases were as follows:
(In millions)
202520242023
Operating leases
Lease income related to ChoiceLease (1)
$1,606 $1,551 $1,483 
Lease income related to commercial rental (2)
$883 $928 $1,123 
 
Sales-type leases
Interest income related to net investment in leases$90 $75 $56 
 
Variable lease income excluding commercial rental (1) (2)
$292 $304 $308 
________________________ 
(1)In 2024, amounts have been revised.
(2)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.
The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:
 December 31,
(In millions)
20252024
Net investment in the lease - lease payment receivable$860 $818 
Net investment in the lease - unguaranteed residual value in assets54 49 
914 867 
Estimated loss allowance(5)(5)
Total$909 $862 

Maturities of sales-type lease receivables as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$261 
2027225 
2028207 
2029159 
2030115 
Thereafter136 
Total undiscounted cash flows1,103 
Present value of lease payments (recognized as lease receivables)(860)
Difference between undiscounted cash flows and discounted cash flows$243 
Operating lease payments expected to be received as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$1,321 
20271,059 
2028838 
2029641 
2030433 
Thereafter310 
Total undiscounted cash flows$4,602 
Leases as Lessee

The components of lease expense were as follows:
(In millions)202520242023
Finance lease cost
Amortization of right-of-use-assets$37 $20 $15 
Interest on lease liabilities6 3 2 
Operating lease cost381 374 271 
Short-term lease and other13 8 10 
Variable lease cost64 54 50 
Sublease income(14)(29)(41)
Total lease cost$487 $430 $307 
Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:
 December 31,
2025
2024
(In millions)
OperatingFinanceOperatingFinance
Noncurrent assets
$1,000 $112 $1,055 $75 
Current liabilities
$303 $35 $302 $22 
Noncurrent liabilities
$732 $78 $804 $54 


 December 31,
 20252024
Weighted-average remaining lease term
Operating4 years5 years
Finance4 years4 years
Weighted-average discount rate
Operating5.5 %5.4 %
Finance4.9 %5.1 %
Maturities of operating and finance lease liabilities were as follows (in millions):
Operating Leases
Finance Leases
 
Years ending December 31,
Total
2026$349 $40 $389 
2027289 34 323 
2028208 26 234 
2029124 15 139 
203081 7 88 
Thereafter111 2 113 
Total lease payments1,162 124 1,286 
Less: Imputed Interest(127)(11)(138)
Present value of lease liabilities$1,035 $113 $1,148 
________________________ 
Note: Amounts may not be additive due to rounding.
As of December 31, 2025, we have entered into $34 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2026 with lease terms of generally 10 years
LEASES LEASES
Leases as Lessor

The components of revenue from leases were as follows:
(In millions)
202520242023
Operating leases
Lease income related to ChoiceLease (1)
$1,606 $1,551 $1,483 
Lease income related to commercial rental (2)
$883 $928 $1,123 
 
Sales-type leases
Interest income related to net investment in leases$90 $75 $56 
 
Variable lease income excluding commercial rental (1) (2)
$292 $304 $308 
________________________ 
(1)In 2024, amounts have been revised.
(2)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.
The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:
 December 31,
(In millions)
20252024
Net investment in the lease - lease payment receivable$860 $818 
Net investment in the lease - unguaranteed residual value in assets54 49 
914 867 
Estimated loss allowance(5)(5)
Total$909 $862 

Maturities of sales-type lease receivables as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$261 
2027225 
2028207 
2029159 
2030115 
Thereafter136 
Total undiscounted cash flows1,103 
Present value of lease payments (recognized as lease receivables)(860)
Difference between undiscounted cash flows and discounted cash flows$243 
Operating lease payments expected to be received as of December 31, 2025, were as follows:
Years ending December 31,
(In millions)
2026$1,321 
20271,059 
2028838 
2029641 
2030433 
Thereafter310 
Total undiscounted cash flows$4,602 
Leases as Lessee

The components of lease expense were as follows:
(In millions)202520242023
Finance lease cost
Amortization of right-of-use-assets$37 $20 $15 
Interest on lease liabilities6 3 2 
Operating lease cost381 374 271 
Short-term lease and other13 8 10 
Variable lease cost64 54 50 
Sublease income(14)(29)(41)
Total lease cost$487 $430 $307 
Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:
 December 31,
2025
2024
(In millions)
OperatingFinanceOperatingFinance
Noncurrent assets
$1,000 $112 $1,055 $75 
Current liabilities
$303 $35 $302 $22 
Noncurrent liabilities
$732 $78 $804 $54 


 December 31,
 20252024
Weighted-average remaining lease term
Operating4 years5 years
Finance4 years4 years
Weighted-average discount rate
Operating5.5 %5.4 %
Finance4.9 %5.1 %
Maturities of operating and finance lease liabilities were as follows (in millions):
Operating Leases
Finance Leases
 
Years ending December 31,
Total
2026$349 $40 $389 
2027289 34 323 
2028208 26 234 
2029124 15 139 
203081 7 88 
Thereafter111 2 113 
Total lease payments1,162 124 1,286 
Less: Imputed Interest(127)(11)(138)
Present value of lease liabilities$1,035 $113 $1,148 
________________________ 
Note: Amounts may not be additive due to rounding.
As of December 31, 2025, we have entered into $34 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2026 with lease terms of generally 10 years