v3.25.4
LEASES (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Income - Operating
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 
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(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.
Schedule of Lease Income - Sales Type
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 
Schedule of Maturity of Sales-Type Lease Receivable
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 
Schedule of Maturity of Operating Lease Payments
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 
Schedule of Lease Cost, Lease Term, and Discount Rate
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 
 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 %
Schedule of Leases, Assets and Liabilities
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 
Schedule of Operating Lease Maturities
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 
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Note: Amounts may not be additive due to rounding.
Schedule of Finance Lease Maturities
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 
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Note: Amounts may not be additive due to rounding.