v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
We have entered into various operating and finance lease agreements for certain of our offices, manufacturing and warehouse facilities, retail and service locations, data centers, equipment, vehicles, and energy generation and storage systems, worldwide. We determine if an arrangement is a lease, or contains a lease, at inception and record the lease in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.
We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.
We have elected not to present short-term leases on the consolidated balance sheets as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.
Our leases, where we are the lessee, often include options to extend the lease term for up to 10 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date for new leases. Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Interest expense on finance lease liabilities is recognized over the lease term within Interest expense in the consolidated statements of operations.
The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheets:
December 31, 2025December 31, 2024
Operating leases:  
Operating lease right-of-use assets$6,027 $5,160 
 
Accrued liabilities and other$954 $807 
Other long-term liabilities5,389 4,603 
Total operating lease liabilities$6,343 $5,410 
 
Finance leases:  
Energy generation and storage systems, net$19 $21 
Property, plant and equipment, net229 350 
Total finance lease assets$248 $371 
 
Current portion of long-term debt and finance leases$71 $113 
Long-term debt and finance leases, net of current portion152 222 
Total finance lease liabilities$223 $335 
The components of lease expense are as follows (in millions) within our consolidated statements of operations:
Year Ended December 31,
202520242023
Operating lease expense:   
Operating lease expense (1)$1,766 $1,500 $1,153 
 
Finance lease expense:
Amortization of leased assets$118 $409 $506 
Interest on lease liabilities12 21 45 
Total finance lease expense$130 $430 $551 
 
Total lease expense$1,896 $1,930 $1,704 
(1)Includes short-term leases and variable lease costs, which are individually immaterial.
Other information related to leases where we are the lessee is as follows:
December 31, 2025December 31, 2024
Weighted-average remaining lease term:
Operating leases7.7 years7.9 years
Finance leases4.3 years4.4 years
 
Weighted-average discount rate:
Operating leases5.0 %5.3 %
Finance leases4.7 %4.7 %
Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,743 $1,450 $1,084 
Operating cash outflows from finance leases (interest payments)$12 $21 $47 
Leased assets obtained in exchange for finance lease liabilities$— $144 $10 
Leased assets obtained in exchange for operating lease liabilities$1,643 $1,808 $2,170 
As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):
 Operating
Leases		Finance
Leases
2026$1,241 $80 
20271,127 72 
20281,012 27 
2029879 22 
2030787 22 
Thereafter2,668 23 
Total minimum lease payments7,714 246 
Less: Interest1,371 23 
Present value of lease obligations6,343 223 
Less: Current portion954 71 
Long-term portion of lease obligations$5,389 $152 
As of December 31, 2025, we have excluded from the table above additional operating leases that have not yet commenced with aggregate rent payments of $849 million. These operating leases will commence between fiscal year 2026 and 2028 with lease terms of 2 years to 20 years.
In July 2025, we entered into a supply agreement for semiconductor contract manufacturing of our AI chips, which is expected to commence in 2027 or later. If and when product specifications are met and production commences, we expect to account for the chipmaking machinery and equipment as leased assets as the terms of the arrangement convey a finance lease under ASC 842 Leases.
Operating Lease and Sales-type Lease Receivables
We are the lessor of certain vehicle and energy generation and storage systems as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2025, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):
Operating
Leases		Sales-type
Leases
2026$1,045 $144 
2027709 83 
2028363 27 
2029210 5 
2030203 — 
Thereafter1,077 — 
Gross lease receivables$3,607 $259 
The above table does not include vehicle sales to customers or leasing partners with a resale value guarantee as the cash payments were received upfront. For our energy generation PPA arrangements, customers are charged solely based on actual power produced by the installed energy generation system at a predefined rate per kilowatt-hour of power produced. The future payments from such arrangements are not included in the above table as they are a function of the power generated by the related energy generation systems in the future.
Net Investment in Sales-type Leases
Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheets as a component of Prepaid expenses and other current assets for the current portion and as Other non-current assets for the long-term portion. Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions):
December 31, 2025December 31, 2024
Gross lease receivables$259 $484 
Unearned interest income(14)(38)
Allowance for expected credit losses(5)(6)
Net investment in sales-type leases$240 $440 
 
Reported as:
Prepaid expenses and other current assets$130 $152 
Other non-current assets110 288 
Net investment in sales-type leases$240 $440 
Leases Leases
We have entered into various operating and finance lease agreements for certain of our offices, manufacturing and warehouse facilities, retail and service locations, data centers, equipment, vehicles, and energy generation and storage systems, worldwide. We determine if an arrangement is a lease, or contains a lease, at inception and record the lease in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.
We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.
We have elected not to present short-term leases on the consolidated balance sheets as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.
Our leases, where we are the lessee, often include options to extend the lease term for up to 10 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date for new leases. Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Interest expense on finance lease liabilities is recognized over the lease term within Interest expense in the consolidated statements of operations.
The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheets:
December 31, 2025December 31, 2024
Operating leases:  
Operating lease right-of-use assets$6,027 $5,160 
 
Accrued liabilities and other$954 $807 
Other long-term liabilities5,389 4,603 
Total operating lease liabilities$6,343 $5,410 
 
Finance leases:  
Energy generation and storage systems, net$19 $21 
Property, plant and equipment, net229 350 
Total finance lease assets$248 $371 
 
Current portion of long-term debt and finance leases$71 $113 
Long-term debt and finance leases, net of current portion152 222 
Total finance lease liabilities$223 $335 
The components of lease expense are as follows (in millions) within our consolidated statements of operations:
Year Ended December 31,
202520242023
Operating lease expense:   
Operating lease expense (1)$1,766 $1,500 $1,153 
 
Finance lease expense:
Amortization of leased assets$118 $409 $506 
Interest on lease liabilities12 21 45 
Total finance lease expense$130 $430 $551 
 
Total lease expense$1,896 $1,930 $1,704 
(1)Includes short-term leases and variable lease costs, which are individually immaterial.
Other information related to leases where we are the lessee is as follows:
December 31, 2025December 31, 2024
Weighted-average remaining lease term:
Operating leases7.7 years7.9 years
Finance leases4.3 years4.4 years
 
Weighted-average discount rate:
Operating leases5.0 %5.3 %
Finance leases4.7 %4.7 %
Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,743 $1,450 $1,084 
Operating cash outflows from finance leases (interest payments)$12 $21 $47 
Leased assets obtained in exchange for finance lease liabilities$— $144 $10 
Leased assets obtained in exchange for operating lease liabilities$1,643 $1,808 $2,170 
As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):
 Operating
Leases		Finance
Leases
2026$1,241 $80 
20271,127 72 
20281,012 27 
2029879 22 
2030787 22 
Thereafter2,668 23 
Total minimum lease payments7,714 246 
Less: Interest1,371 23 
Present value of lease obligations6,343 223 
Less: Current portion954 71 
Long-term portion of lease obligations$5,389 $152 
As of December 31, 2025, we have excluded from the table above additional operating leases that have not yet commenced with aggregate rent payments of $849 million. These operating leases will commence between fiscal year 2026 and 2028 with lease terms of 2 years to 20 years.
In July 2025, we entered into a supply agreement for semiconductor contract manufacturing of our AI chips, which is expected to commence in 2027 or later. If and when product specifications are met and production commences, we expect to account for the chipmaking machinery and equipment as leased assets as the terms of the arrangement convey a finance lease under ASC 842 Leases.
Operating Lease and Sales-type Lease Receivables
We are the lessor of certain vehicle and energy generation and storage systems as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2025, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):
Operating
Leases		Sales-type
Leases
2026$1,045 $144 
2027709 83 
2028363 27 
2029210 5 
2030203 — 
Thereafter1,077 — 
Gross lease receivables$3,607 $259 
The above table does not include vehicle sales to customers or leasing partners with a resale value guarantee as the cash payments were received upfront. For our energy generation PPA arrangements, customers are charged solely based on actual power produced by the installed energy generation system at a predefined rate per kilowatt-hour of power produced. The future payments from such arrangements are not included in the above table as they are a function of the power generated by the related energy generation systems in the future.
Net Investment in Sales-type Leases
Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheets as a component of Prepaid expenses and other current assets for the current portion and as Other non-current assets for the long-term portion. Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions):
December 31, 2025December 31, 2024
Gross lease receivables$259 $484 
Unearned interest income(14)(38)
Allowance for expected credit losses(5)(6)
Net investment in sales-type leases$240 $440 
 
Reported as:
Prepaid expenses and other current assets$130 $152 
Other non-current assets110 288 
Net investment in sales-type leases$240 $440 
Leases Leases
We have entered into various operating and finance lease agreements for certain of our offices, manufacturing and warehouse facilities, retail and service locations, data centers, equipment, vehicles, and energy generation and storage systems, worldwide. We determine if an arrangement is a lease, or contains a lease, at inception and record the lease in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.
We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.
We have elected not to present short-term leases on the consolidated balance sheets as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.
Our leases, where we are the lessee, often include options to extend the lease term for up to 10 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date for new leases. Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Interest expense on finance lease liabilities is recognized over the lease term within Interest expense in the consolidated statements of operations.
The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheets:
December 31, 2025December 31, 2024
Operating leases:  
Operating lease right-of-use assets$6,027 $5,160 
 
Accrued liabilities and other$954 $807 
Other long-term liabilities5,389 4,603 
Total operating lease liabilities$6,343 $5,410 
 
Finance leases:  
Energy generation and storage systems, net$19 $21 
Property, plant and equipment, net229 350 
Total finance lease assets$248 $371 
 
Current portion of long-term debt and finance leases$71 $113 
Long-term debt and finance leases, net of current portion152 222 
Total finance lease liabilities$223 $335 
The components of lease expense are as follows (in millions) within our consolidated statements of operations:
Year Ended December 31,
202520242023
Operating lease expense:   
Operating lease expense (1)$1,766 $1,500 $1,153 
 
Finance lease expense:
Amortization of leased assets$118 $409 $506 
Interest on lease liabilities12 21 45 
Total finance lease expense$130 $430 $551 
 
Total lease expense$1,896 $1,930 $1,704 
(1)Includes short-term leases and variable lease costs, which are individually immaterial.
Other information related to leases where we are the lessee is as follows:
December 31, 2025December 31, 2024
Weighted-average remaining lease term:
Operating leases7.7 years7.9 years
Finance leases4.3 years4.4 years
 
Weighted-average discount rate:
Operating leases5.0 %5.3 %
Finance leases4.7 %4.7 %
Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,743 $1,450 $1,084 
Operating cash outflows from finance leases (interest payments)$12 $21 $47 
Leased assets obtained in exchange for finance lease liabilities$— $144 $10 
Leased assets obtained in exchange for operating lease liabilities$1,643 $1,808 $2,170 
As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):
 Operating
Leases		Finance
Leases
2026$1,241 $80 
20271,127 72 
20281,012 27 
2029879 22 
2030787 22 
Thereafter2,668 23 
Total minimum lease payments7,714 246 
Less: Interest1,371 23 
Present value of lease obligations6,343 223 
Less: Current portion954 71 
Long-term portion of lease obligations$5,389 $152 
As of December 31, 2025, we have excluded from the table above additional operating leases that have not yet commenced with aggregate rent payments of $849 million. These operating leases will commence between fiscal year 2026 and 2028 with lease terms of 2 years to 20 years.
In July 2025, we entered into a supply agreement for semiconductor contract manufacturing of our AI chips, which is expected to commence in 2027 or later. If and when product specifications are met and production commences, we expect to account for the chipmaking machinery and equipment as leased assets as the terms of the arrangement convey a finance lease under ASC 842 Leases.
Operating Lease and Sales-type Lease Receivables
We are the lessor of certain vehicle and energy generation and storage systems as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2025, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):
Operating
Leases		Sales-type
Leases
2026$1,045 $144 
2027709 83 
2028363 27 
2029210 5 
2030203 — 
Thereafter1,077 — 
Gross lease receivables$3,607 $259 
The above table does not include vehicle sales to customers or leasing partners with a resale value guarantee as the cash payments were received upfront. For our energy generation PPA arrangements, customers are charged solely based on actual power produced by the installed energy generation system at a predefined rate per kilowatt-hour of power produced. The future payments from such arrangements are not included in the above table as they are a function of the power generated by the related energy generation systems in the future.
Net Investment in Sales-type Leases
Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheets as a component of Prepaid expenses and other current assets for the current portion and as Other non-current assets for the long-term portion. Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions):
December 31, 2025December 31, 2024
Gross lease receivables$259 $484 
Unearned interest income(14)(38)
Allowance for expected credit losses(5)(6)
Net investment in sales-type leases$240 $440 
 
Reported as:
Prepaid expenses and other current assets$130 $152 
Other non-current assets110 288 
Net investment in sales-type leases$240 $440 
Leases Leases
We have entered into various operating and finance lease agreements for certain of our offices, manufacturing and warehouse facilities, retail and service locations, data centers, equipment, vehicles, and energy generation and storage systems, worldwide. We determine if an arrangement is a lease, or contains a lease, at inception and record the lease in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.
We have lease agreements with lease and non-lease components, and have elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately, would be classified as an operating lease.
We have elected not to present short-term leases on the consolidated balance sheets as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments.
Our leases, where we are the lessee, often include options to extend the lease term for up to 10 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Lease expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate. We calculate the present value of future lease payments based on the index or rate at the lease commencement date for new leases. Differences between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset. Interest expense on finance lease liabilities is recognized over the lease term within Interest expense in the consolidated statements of operations.
The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheets:
December 31, 2025December 31, 2024
Operating leases:  
Operating lease right-of-use assets$6,027 $5,160 
 
Accrued liabilities and other$954 $807 
Other long-term liabilities5,389 4,603 
Total operating lease liabilities$6,343 $5,410 
 
Finance leases:  
Energy generation and storage systems, net$19 $21 
Property, plant and equipment, net229 350 
Total finance lease assets$248 $371 
 
Current portion of long-term debt and finance leases$71 $113 
Long-term debt and finance leases, net of current portion152 222 
Total finance lease liabilities$223 $335 
The components of lease expense are as follows (in millions) within our consolidated statements of operations:
Year Ended December 31,
202520242023
Operating lease expense:   
Operating lease expense (1)$1,766 $1,500 $1,153 
 
Finance lease expense:
Amortization of leased assets$118 $409 $506 
Interest on lease liabilities12 21 45 
Total finance lease expense$130 $430 $551 
 
Total lease expense$1,896 $1,930 $1,704 
(1)Includes short-term leases and variable lease costs, which are individually immaterial.
Other information related to leases where we are the lessee is as follows:
December 31, 2025December 31, 2024
Weighted-average remaining lease term:
Operating leases7.7 years7.9 years
Finance leases4.3 years4.4 years
 
Weighted-average discount rate:
Operating leases5.0 %5.3 %
Finance leases4.7 %4.7 %
Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$1,743 $1,450 $1,084 
Operating cash outflows from finance leases (interest payments)$12 $21 $47 
Leased assets obtained in exchange for finance lease liabilities$— $144 $10 
Leased assets obtained in exchange for operating lease liabilities$1,643 $1,808 $2,170 
As of December 31, 2025, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):
 Operating
Leases		Finance
Leases
2026$1,241 $80 
20271,127 72 
20281,012 27 
2029879 22 
2030787 22 
Thereafter2,668 23 
Total minimum lease payments7,714 246 
Less: Interest1,371 23 
Present value of lease obligations6,343 223 
Less: Current portion954 71 
Long-term portion of lease obligations$5,389 $152 
As of December 31, 2025, we have excluded from the table above additional operating leases that have not yet commenced with aggregate rent payments of $849 million. These operating leases will commence between fiscal year 2026 and 2028 with lease terms of 2 years to 20 years.
In July 2025, we entered into a supply agreement for semiconductor contract manufacturing of our AI chips, which is expected to commence in 2027 or later. If and when product specifications are met and production commences, we expect to account for the chipmaking machinery and equipment as leased assets as the terms of the arrangement convey a finance lease under ASC 842 Leases.
Operating Lease and Sales-type Lease Receivables
We are the lessor of certain vehicle and energy generation and storage systems as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2025, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):
Operating
Leases		Sales-type
Leases
2026$1,045 $144 
2027709 83 
2028363 27 
2029210 5 
2030203 — 
Thereafter1,077 — 
Gross lease receivables$3,607 $259 
The above table does not include vehicle sales to customers or leasing partners with a resale value guarantee as the cash payments were received upfront. For our energy generation PPA arrangements, customers are charged solely based on actual power produced by the installed energy generation system at a predefined rate per kilowatt-hour of power produced. The future payments from such arrangements are not included in the above table as they are a function of the power generated by the related energy generation systems in the future.
Net Investment in Sales-type Leases
Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheets as a component of Prepaid expenses and other current assets for the current portion and as Other non-current assets for the long-term portion. Lease receivables relating to sales-type leases are presented on the consolidated balance sheets as follows (in millions):
December 31, 2025December 31, 2024
Gross lease receivables$259 $484 
Unearned interest income(14)(38)
Allowance for expected credit losses(5)(6)
Net investment in sales-type leases$240 $440 
 
Reported as:
Prepaid expenses and other current assets$130 $152 
Other non-current assets110 288 
Net investment in sales-type leases$240 $440