LEASES

6 Months Ended

Jun. 30, 2026

Leasing Activities – Lessee:

Lease arrangements with OWN Program participants: Under the OWN Program, the Company leases

equipment owned by participants. The Company accounts for these arrangements as a lease under ASC Topic 842,

Leases (“Topic 842”) whereby the Company is the lessee.

Lease arrangements with other parties: The Company, as a lessee, also leases properties, vehicles, certain

equipment used in its operations from parties not participating in the OWN Program, and aircraft under various

operating and finance leases.

The leases are noncancellable and expire on various terms through 2040. There are no material payments for

leases that have not yet commenced.

The following table presents the components of the Company’s lease costs and the classification of such costs in

the condensed consolidated statements of operations (in millions):


	Statements of Operations	Three Months Ended June 30,		Six Months Ended June 30,
Component of Lease Cost	Line Item	2026	2025	2026	2025
OWN Program lease payments	OWN Program payouts	$234	$173	$451	$328
Equipment and vehicle operating lease expense ........	Direct operating costs	6	6	12	12
Real estate operating lease expense .....................................	Selling, general and administrative expenses	26	22	52	43
Finance lease expense:
Amortization of equipment leased assets ....................	Depreciation of rental equipment	3	3	5	5
Amortization of property leased assets ........................	Selling, general and administrative expenses	2	1	5	2
Interest on lease liabilities ..	Interest expense	4	1	8	3
Short-term lease cost ................	Selling, general and administrative expenses	1	–	2	–
Total lease expense ..................		$276	$206	$535	$393