Annual report [Section 13 and 15(d), not S-K Item 405]

Leases (Tables)

v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Lessee Lease in Statement of Financial Position
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):
December 31,
Consolidated Balance Sheets Location 2025 2024
Right-of-use assets—Operating Operating lease assets $ 76  $ 79 
Right-of-use assets—Financing Property, plant and equipment, net of accumulated depreciation 62  70 
Total right-of-use assets $ 138  $ 149 
Current operating lease liabilities Other current liabilities 5  4 
Current finance lease liabilities Other current liabilities 7  6 
Non-current operating lease liabilities Other non-current liabilities 73  76 
Non-current finance lease liabilities Other non-current liabilities 61  67 
Total lease liabilities $ 146  $ 153 
Schedule of Lease Cost, Income Statement Location
The following table shows the classification and location of our lease costs on our Consolidated Statements of Operations (in millions):
Year Ended December 31,
Consolidated Statements of Operations Location
 2025 2024 2023
Operating lease cost (1) Operating costs and expenses (2) $ 11  $ 12  $ 13 
Finance lease cost:
Amortization of right-of-use assets Depreciation and amortization expense 9 7  4 
Interest on lease liabilities Interest expense, net of capitalized interest 4 3  1 
Total lease cost $ 24  $ 22  $ 18 
(1)Includes $2 million, $1 million and $1 million of variable lease costs incurred during the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Presented in the appropriate line item within operating costs and expenses, consistent with the nature of our use of the asset under lease.
Schedule of Maturity of Lease Liabilities
Future annual minimum lease payments for operating and finance leases as of December 31, 2025 are as follows (in millions): 
Years Ending December 31, Operating Leases Finance Leases
2026 $ 8  $ 11 
2027 8  10 
2028 9  12 
2029 9  12 
2030 9  12 
Thereafter 100  27 
Total lease payments 143  84 
Less: Interest (65) (16)
Present value of lease liabilities $ 78  $ 68 
Lessee, Other Quantitative Information
The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases:
December 31, 2025 December 31, 2024
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted-average remaining lease term (in years) 25.6 7.2 26.4 8.2
Weighted-average discount rate 5.1  % 5.7  % 5.1  % 5.7  %
The following table includes other quantitative information for our operating and finance leases (in millions):
Year Ended December 31,
2025 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 8  $ 9  $ 12 
Operating cash flows from finance leases 4  3  1 
Financing cash flows from finance leases 6  5  4 
Right-of-use assets obtained in exchange for operating lease liabilities (1) 2  4  1 
Right-of-use assets obtained in exchange for finance lease liabilities (2) —  60  — 
(1)Net of $33 million reclassified from operating leases to finance leases during the year ended December 31, 2024, as a result of modifications of the underlying tug vessel leases.
(2)Net of $15 million reclassified from finance leases to operating leases during the year ended December 31, 2024, as a result of modifications of the underlying tug vessel leases.