Leases

3 Months Ended

Mar. 31, 2026

Note 14. Leases

We have operating leases that primarily consist of real estate, machinery, and equipment. As of March 31, 2026, the Company does not have any material finance leases. Our leases have remaining lease terms of up to 12 years, some of which include options to extend the leases for up to two years, and some of which include options to terminate the leases within the year.

The components of lease expense are as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Operating lease cost		$	5	$	4
Short-term lease cost		1		—
Total lease cost		$	6	$	4

Supplemental cash flow information related to operating leases is as follows:


	Three Months Ended March 31,
		2026		2025
		(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases		$	4	$	4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		5		2

Supplemental balance sheet information related to operating leases is as follows:


	March 31, 2026		December 31, 2025
	(Dollars in millions)
Other assets	$	50	$	49
Accrued liabilities	13		13
Other liabilities	39		38


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term (in years)	6.29		6.43
Weighted-average discount rate	6.03	%	6.25	%

Maturities of operating lease liabilities as of March 31, 2026 were as follows:


	(Dollars in millions)
2026	$	13
2027	14
2028	10
2029	6
2030	4
Thereafter	16
Total lease payments	63
Less imputed interest	(11)
	$	52