v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lease Cost
The Company’s total lease cost consists of the following:
Year Ended December 31,
(Dollars in millions)202520242023
Operating lease cost(1)
$29 $24 $26 
Finance lease cost(2):
Amortization of right-of-use assets12 12 10 
Interest on lease liabilities6 6 5 
Total lease cost
$47 $42 $41 
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(1)Operating lease cost is included within cost of revenues or general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Consolidated Statements of Earnings. Operating lease cost includes short-term leases of approximately $1 million, $2 million, and $3 million and an insignificant amount of variable lease cost for 2025, 2024 and 2023, respectively.
(2)Finance lease cost is recorded as depreciation and amortization expense within cost of revenues or general and administrative expenses, dependent upon the nature and use of the ROU asset, and interest expense, net in the Consolidated Statements of Earnings.
Schedule of Supplemental Balance Sheet Information
Supplemental balance sheet information related to leases is as follows:
December 31,
(Dollars in millions)20252024
ROU assets
Operating leases(1)
$107 $79 
Finance leases(2)
89 97 
Total leased assets
$196 $176 
Lease liabilities
Current lease liabilities:
Operating(1)
$28 $27 
Finance(2)
10 10 
Noncurrent lease liabilities:
Operating(1)
95 66 
Finance(2)
96 103 
Total lease liabilities
$229 $206 
________________
(1)Operating lease ROU assets are included within other noncurrent assets and operating lease liabilities are included within other current liabilities (current portion) and other noncurrent liabilities (noncurrent portion) in the Consolidated Balance Sheets.
(2)Finance lease ROU assets are included within property, plant and equipment, net and finance lease liabilities are included within short-term borrowings and current portion of long-term debt (current portion) and long-term debt (noncurrent portion) in the Consolidated Balance Sheets.
Schedule of Supplemental Cash Flows Information
Supplemental cash flow information related to leases is as follows:
Year Ended December 31,
(Dollars in millions)202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$24 $26 $28 
Operating cash flows from finance leases6 6 5 
Financing cash flows from finance leases10 9 8 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases47 25 17 
Finance leases2 11 6 
Schedule of Weighted Average Lease Term and Discount Rate
Lease terms and discount rates related to leases are as follows:
December 31,
20252024
Weighted average remaining lease term:
Operating leases6 years5 years
Finance leases13 years14 years
Weighted average discount rate:
Operating leases5.5 %4.6 %
Finance leases5.9 %5.2 %
Schedule of Maturities of Lease Liability
As of December 31, 2025, future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows:
(Dollars in millions)
Year Ending December 31,
Operating LeasesFinance Leases
2026$27 $16 
202726 13 
202824 12 
202918 11 
203014 11 
Thereafter29 95 
Total lease payments
138 158 
Less: imputed interest15 52 
Present value of lease liabilities
123 106 
Less: current maturities28 10 
Long-term lease obligations
$95 $96