Leases

6 Months Ended

Jun. 30, 2025

NOTE 9 Leases

Substantially all of the Company's operating lease right-of-use assets and operating lease liabilities represent real estate leases for office space used to conduct the Company's business that expire on various dates through 2041. Leases generally contain renewal options and escalation clauses based upon increases in the lessors’ operating expenses and other charges. The Company anticipates that most of these leases will be renewed or replaced upon expiration, although not necessarily for the same amount of space.

The balances and classification of operating lease right-of-use assets and operating lease liabilities within the Condensed Consolidated Balance Sheets is as follows:


(in millions)		June 30, 2025		December 31, 2024
Assets:
Operating lease right-of-use assets	Operating lease assets	$	198	$	200
Total assets			198		200
Liabilities:
Current operating lease liabilities	Accrued expenses and other liabilities		46		47
Non-current operating lease liabilities	Operating lease liabilities		186		189
Total liabilities		$	232	$	236

The components of lease cost for operating leases were as follows:


	Three months ended June 30,					Six months ended June 30,
(in millions)	2025			2024		2025			2024
Operating leases:
Lease cost	$	16		$	14	$	30		$	28
Variable lease cost		2			1		2			2
Operating lease cost		18			15		32			30
Sublease income		(1	)		—		(1	)		(1	)
Total lease cost net	$	17		$	15	$	31		$	29

The weighted average remaining lease term and the weighted average discount rate for operating leases as of June 30, 2025 were:


Weighted average remaining lease term in years	5.96
Weighted average discount rate	4.00	%

Maturities of the operating lease liabilities by fiscal year at June 30, 2025 for the Company's operating leases are as follows:


(in millions)	Operating leases
2025 (Remainder)	$	26
2026		54
2027		45
2028		36
2029		29
Thereafter		70
Total undiscounted lease payments		260
Less: imputed interest		28
Present value of lease payments	$	232

Supplemental cash flow information for operating leases is as follows:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2025		2024		2025		2024
Cash paid for amounts included in measurement of liabilities
Operating cash flows from operating leases	$	17	$	15	$	33	$	30
Right-of-use assets obtained in exchange for new operating liabilities	$	9	$	13	$	15	$	25