The Company leases property and equipment under finance and operating leases for its corporate headquarters, administrative functions, marketing and sales offices, and various other facilities and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Many of its leases include rental escalation clauses, lease incentives, renewal options and/or termination options that are factored into the Company’s determination of lease payments. The Company elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments on a straight-line basis over the lease term in the Condensed Consolidated Statements of Income.

When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of its leases do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The majority of the Company’s leases have remaining lease terms of one to 20 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within one year.


	Three Months Ended
	March 31,
	2026		2025
Operating lease cost	$	5	$	5

Short-term lease cost	$	4	$	4

Finance lease cost:
Amortization of right-of-use assets	$	3	$	3

Total finance lease cost	$	3	$	3


	Balance Sheet Classification	March 31, 2026			December 31, 2025
Operating leases (in millions):
Operating lease right-of-use assets	Other assets	$	85		$	85
Operating lease liabilities	Accrued expenses and other liabilities	$	135		$	136

Finance leases (in millions):
Finance lease assets (a)	Property and equipment, net	$	17		$	19
Finance lease liabilities	Debt	$	18		$	18

Weighted average remaining lease term:
Operating leases		9.4 years			9.6 years
Finance leases		2.4 years			2.4 years
Weighted average discount rate:
Operating leases (b)		6.3		%	6.3		%
Finance leases		6.0		%	6.1		%


	Three Months Ended
	March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	7	$	8

Financing cash outflows from finance leases	$	3	$	2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2	$	9
Finance leases	$	1	$	1


	Operating Leases		Finance Leases
Nine months ending December 31, 2026	$	20	$	7
2027	25		7
2028	22		4
2029	20		1
2030	13		—
Thereafter	84		—
Total minimum lease payments	184		19
Amount of lease payments representing interest	(49)		(1)
Present value of future minimum lease payments	$	135	$	18