v3.26.1
Leases (Tables)
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Schedule of Operating and Finance Leases with Consolidated Balance Sheets

The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s Condensed Consolidated Balance Sheets (dollars in millions):

 

 

June 30,
2026

 

 

December 31,
2025

 

Operating leases:

 

 

 

 

 

 

Other non-current assets

 

$

113

 

 

$

18

 

 

 

 

 

 

 

 

Other current liabilities

 

$

15

 

 

$

5

 

Other non-current liabilities

 

 

65

 

 

 

13

 

Total operating lease liabilities

 

$

80

 

 

$

18

 

 

 

 

 

 

 

 

Finance leases:

 

 

 

 

 

 

Property, plant and equipment, net

 

$

34

 

 

$

—

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

3

 

 

$

—

 

Long-term debt

 

 

34

 

 

$

—

 

Total finance lease liabilities

 

$

37

 

 

$

—

 
Schedule of Consolidated Statements of Comprehensive Income

The components of lease expense were as follows within the Company’s Condensed Consolidated Statements of Comprehensive Income (dollars in millions):

 

 

Three Months Ended
June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Operating lease expense:

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease expense

 

$

5

 

 

$

1

 

 

$

10

 

 

$

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease expense:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of leased assets

 

$

1

 

 

$

—

 

 

$

2

 

 

$

—

 

Total lease expense

 

$

6

 

 

$

1

 

 

$

12

 

 

$

3

 
Schedule of Other Information Related to Leases

Other information related to leases where the Company is the lessee was as follows:

 

 

June 30,
2026

 

 

December 31,
2025

 

Weighted-average remaining lease term (in years):

 

 

 

 

 

 

Operating leases

 

 

8.7

 

 

 

4.8

 

Finance leases

 

 

16.5

 

 

N/A

 

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

 

Operating leases

 

 

6.44

%

 

 

4.86

%

Finance leases

 

 

3.27

%

 

N/A

 
Schedule of Lease Maturity, Current Guidance

The following table reconciles future undiscounted cash flows for operating leases and financing leases to total lease liabilities as of June 30, 2026 (dollars in millions):

 

 

Operating Leases

 

 

Finance Leases

 

For the remainder of 2026

 

$

10

 

 

$

2

 

2027

 

 

17

 

 

 

4

 

2028

 

 

15

 

 

 

4

 

2029

 

 

9

 

 

 

4

 

2030

 

 

8

 

 

 

3

 

Thereafter

 

 

50

 

 

 

31

 

Total lease payments

 

 

109

 

 

 

48

 

Less: Interest

 

 

29

 

 

 

11

 

Present value of lease liabilities

 

 

80

 

 

 

37

 

Less: Current portion

 

 

15

 

 

 

3

 

Long-term portion of lease obligations

 

$

65

 

 

$

34