9. LEASES The Company’s leases are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2026 and 2025 consisted of the following: | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | (In millions) | | 2026 | | 2025 | | 2026 | | 2025 | Operating lease cost | | $ | 40.5 | | $ | 35.6 | | $ | 117.6 | | $ | 109.6 | Short-term lease cost | | | 1.0 | | | 1.0 | | | 5.3 | | | 5.9 | Variable lease cost | | | 0.1 | | | — | | | 0.3 | | | 0.2 | Total | | | 41.6 | | | 36.6 | | | 123.2 | | | 115.7 | Sublease income | | | (4.1) | | | (0.1) | | | (5.9) | | | (6.8) | Total lease cost, net | | $ | 37.5 | | $ | 36.5 | | $ | 117.3 | | $ | 108.9 |
Minimum Lease Payments: Future minimum lease payments of operating lease liabilities that have non-cancelable lease terms in excess of one year at September 30, 2026 are as follows: | | | | | | As of | Year (in millions) | | September 30, 2026 | Remainder of 2026 | | $ | 38.5 | 2027 | | | 133.3 | 2028 | | | 83.4 | 2029 | | | 52.7 | 2030 | | | 34.6 | Thereafter | | | 88.6 | Total lease payments | | | 431.1 | Less: Operating lease interest | | | (54.9) | Present value of operating lease liabilities | | | 376.2 | Less: Current portion of operating lease liabilities | | | (128.1) | Long-term operating lease liabilities | | $ | 248.1 |
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