LEASES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of supplemental balance sheet information

The following table presents the components of the Company’s ROU assets and liabilities related to leases

whereby the Company is the lessee and their classification in the consolidated balance sheets (In millions):


Component of Lease Balances	Balance Sheet Line Item	December 31, 2025	December 31, 2024
Assets:
Operating lease assets ..........................	Right of use assets, operating	$676	$569
Finance lease equipment assets ...........	Rental equipment, net	58	52
Finance lease property assets ..............	Property and other fixed assets, net	130	39
Total leased assets ..........................		$864	$660

Liabilities:
Operating lease liabilities, current .......	Current portion of operating lease liabilities	$69	$59
Finance lease liabilities, current ..........	Current portion of finance lease liabilities	19	17
Operating lease liabilities, long-term ..	Operating lease liabilities, net of current portion	655	555
Finance lease liabilities, long-term ......	Finance lease liabilities, net of current portion	169	71
Total lease liabilities ......................		$912	$702

Schedule of lease costs and net income

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

the consolidated statements of net income (In millions):


	Statements of Net Income	Years Ended December 31,
Component of Lease Cost	Line Item	2025	2024	2023
OWN Program lease payments (principal) .	OWN Program payouts	$714	$420	$209
Equipment and vehicle operating lease expense ....................................................	Direct operating costs	26	85	111
Real estate operating lease expense ............	Selling, general and administrative expenses	91	67	41
Finance lease expense:
Amortization of equipment leased assets ..................................................	Depreciation of rental equipment	11	20	21
Amortization of property leased assets ..	Selling, general and administrative expenses	5	–	–
Interest on lease liabilities .....................	Interest expense, net	9	12	9
Short-term lease cost ...................................	Selling, general and administrative expenses	3	1	2
Total lease expense .....................................		$859	$605	$393

Schedule of supplemental cash flow information

The following table provides the supplemental cash flow information related to leases (In millions):


	Years Ended December 31,
	2025	2024	2023
Operating cash outflows from operating leases ..........................................	$116	$131	$143
Operating cash outflows from finance leases .............................................	7	8	6
Finance cash outflows from finance leases .................................................	17	27	20
Total .......................................................................................................	$140	$166	$169

The following table includes a summary of right of use assets obtained in exchange for new lease obligations

for the years ended December 31, 2025 and 2024 (In millions):


	Years Ended December 31,
	2025	2024
Operating leases .........................................................................................................	$188	$228
Finance leases ............................................................................................................	135	57
Total ......................................................................................................................	$323	$285

Schedule of weighted average lease terms and discount rates

The following table includes the weighted average lease terms and discount rates for operating and finance

leases (In millions):


	December 31, 2025	December 31, 2024
Weighted average remaining lease term (years):
Operating leases ....................................................................................................	9.83	10.73
Finance leases .......................................................................................................	10.73	7.67
Weighted average discount rate:
Operating leases ....................................................................................................	7.92%	8.49%
Finance leases .......................................................................................................	6.89%	7.38%

Summary of right of use assets obtained in exchange for new lease obligations

The following table provides the supplemental cash flow information related to leases (In millions):


	Years Ended December 31,
	2025	2024	2023
Operating cash outflows from operating leases ..........................................	$116	$131	$143
Operating cash outflows from finance leases .............................................	7	8	6
Finance cash outflows from finance leases .................................................	17	27	20
Total .......................................................................................................	$140	$166	$169

The following table includes a summary of right of use assets obtained in exchange for new lease obligations

for the years ended December 31, 2025 and 2024 (In millions):


	Years Ended December 31,
	2025	2024
Operating leases .........................................................................................................	$188	$228
Finance leases ............................................................................................................	135	57
Total ......................................................................................................................	$323	$285

Schedule of operating lease maturity

The following table includes the future maturities of lease payments for operating leases and finance leases for

years subsequent to December 31, 2025 (In millions):


	Operating	Finance
2026 ...........................................................................................................................	$119	$31
2027 ...........................................................................................................................	115	24
2028 ...........................................................................................................................	113	28
2029 ...........................................................................................................................	107	24
2030 ...........................................................................................................................	99	24
Thereafter ...................................................................................................................	506	147
Total lease payments .............................................................................................	1,059	278
Less: liability accretion and imputed interest ............................................................	(335)	(90)
Total lease liabilities .............................................................................................	724	188
Less: current lease liabilities ......................................................................................	(69)	(19)
Total long-term lease liabilities ............................................................................	$655	$169

Schedule of finance lease maturity

The following table includes the future maturities of lease payments for operating leases and finance leases for

years subsequent to December 31, 2025 (In millions):


	Operating	Finance
2026 ...........................................................................................................................	$119	$31
2027 ...........................................................................................................................	115	24
2028 ...........................................................................................................................	113	28
2029 ...........................................................................................................................	107	24
2030 ...........................................................................................................................	99	24
Thereafter ...................................................................................................................	506	147
Total lease payments .............................................................................................	1,059	278
Less: liability accretion and imputed interest ............................................................	(335)	(90)
Total lease liabilities .............................................................................................	724	188
Less: current lease liabilities ......................................................................................	(69)	(19)
Total long-term lease liabilities ............................................................................	$655	$169

Schedule of maturities not accounted for as sale leaseback transactions

The maturities of financing obligations that did not meet the criteria to be accounted for as sale leaseback

transactions as of December 31, are as follows (In millions):


2026 ......................................................................................................................................................	$7
2027 ......................................................................................................................................................	3
2028 ......................................................................................................................................................	4
2029 ......................................................................................................................................................	13
2030 ......................................................................................................................................................	–
Thereafter ..............................................................................................................................................	12
Total .................................................................................................................................................	$39