v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
The Company primarily operates in leased branch facilities and corporate offices, which are accounted for as operating leases. The real estate leases expire between 2026 and 2040. The Company also leases equipment, such as trucks and forklifts. Equipment leases are accounted for as either operating or finance leases. The equipment leases expire between 2026 and 2033.
The following table presents components of lease costs recognized in the condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)
2026202520262025
Operating lease costs$53 $29 $97 $29 
Finance lease costs:
Amortization of right-of-use assets14 8 27 8 
Interest on lease obligations3 2 6 2 
Variable lease costs7 3 12 3 
Total lease costs$77 $42 $142 $42 
The following table presents supplemental cash flow information related to the Company’s leases:
Six Months Ended June 30,
(in millions)
20262025
Cash paid for amounts included in measurement of lease obligations:
Operating cash outflows from operating leases$92 $26 
Operating cash outflows from finance leases$6 $2 
Financing cash outflows from finance leases$26 $7 
Right-of-use assets obtained in exchange for new finance lease liabilities$10 $9 
Right-of-use assets obtained in exchange for new operating lease liabilities$11 $12 
As of June 30, 2026, the Company’s operating leases had a weighted-average remaining lease term of 6.4 years and a weighted-average discount rate of 6.51%, and the Company’s finance leases had a weighted-average remaining lease term of 3.9 years and a weighted-average discount rate of 6.52%.
The following table summarizes future lease payments for each of the next five years ending December 31 and thereafter:
(in millions)
Operating LeasesFinance Leases
2026 (July - December)$86 $33 
2027191 59 
2028167 48 
2029142 35 
2030117 22 
Thereafter299 9 
Total future lease payments1,002 206 
Imputed interest(188)(23)
Total lease liabilities$814 $183 
Leases Leases
The Company primarily operates in leased branch facilities and corporate offices, which are accounted for as operating leases. The real estate leases expire between 2026 and 2040. The Company also leases equipment, such as trucks and forklifts. Equipment leases are accounted for as either operating or finance leases. The equipment leases expire between 2026 and 2033.
The following table presents components of lease costs recognized in the condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)
2026202520262025
Operating lease costs$53 $29 $97 $29 
Finance lease costs:
Amortization of right-of-use assets14 8 27 8 
Interest on lease obligations3 2 6 2 
Variable lease costs7 3 12 3 
Total lease costs$77 $42 $142 $42 
The following table presents supplemental cash flow information related to the Company’s leases:
Six Months Ended June 30,
(in millions)
20262025
Cash paid for amounts included in measurement of lease obligations:
Operating cash outflows from operating leases$92 $26 
Operating cash outflows from finance leases$6 $2 
Financing cash outflows from finance leases$26 $7 
Right-of-use assets obtained in exchange for new finance lease liabilities$10 $9 
Right-of-use assets obtained in exchange for new operating lease liabilities$11 $12 
As of June 30, 2026, the Company’s operating leases had a weighted-average remaining lease term of 6.4 years and a weighted-average discount rate of 6.51%, and the Company’s finance leases had a weighted-average remaining lease term of 3.9 years and a weighted-average discount rate of 6.52%.
The following table summarizes future lease payments for each of the next five years ending December 31 and thereafter:
(in millions)
Operating LeasesFinance Leases
2026 (July - December)$86 $33 
2027191 59 
2028167 48 
2029142 35 
2030117 22 
Thereafter299 9 
Total future lease payments1,002 206 
Imputed interest(188)(23)
Total lease liabilities$814 $183