v3.25.0.1
Leases (Notes)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases LEASES
The company has operating and finance leases for real estate, transportation, certain machinery and equipment, and information technology assets. The company’s leases have remaining lease terms of approximately 1 to 38 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the company will exercise that option. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability.

Certain of the company's leases include residual value guarantees. These residual value guarantees are based on a percentage of the lessor's asset acquisition price and the amount of such guarantee generally declines over the course of the lease term. The portion of residual value guarantees that are probable of payment are included in the related lease liability. At December 31, 2024, the company has future maximum payments for residual value guarantees in operating leases of $215 million with final expirations through 2034. The company's lease agreements do not contain any material restrictive covenants.

The components of lease cost for the years ended December 31, 2024, 2023 and 2022 were as follows:
For the Year Ended December 31,
(In millions)202420232022
Operating lease cost$176 $169 $152 
Finance lease cost
Amortization of right-of-use assets1 1 1 
Total finance lease cost$1 $1 $1 
Short-term lease cost272318 
Variable lease cost8118 
Total lease cost$212 $204 $179 

Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows:
For the Year Ended December 31,
(In millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$188 $169 $155 
Financing cash outflows from finance leases$1 $1 $1 
New leases entered into during the years ended December 31, 2024 and 2023 were not material, on an individual basis. Supplemental balance sheet information related to leases is as follows:
(In millions)December 31, 2024December 31, 2023
Operating Leases
 
Operating lease right-of-use assets1
$414 $412 
Current operating lease liabilities2
134 131 
Noncurrent operating lease liabilities3
342 355 
Total operating lease liabilities
$476 $486 
Finance Leases
 
Property, plant, and equipment, gross
$14 $14 
Accumulated depreciation
(14)(13)
Property, plant, and equipment, net
$— $1 
Short-term borrowings and finance lease obligations— 1 
Long-term debt— 1 
Total finance lease liabilities$— $2 
1.Included in other assets in the Consolidated Balance Sheets.
2.Included in accrued and other current liabilities in the Consolidated Balance Sheets.
3.Included in other noncurrent obligations in the Consolidated Balance Sheets.

The company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.
Lease Term and Discount RateDecember 31, 2024December 31, 2023
Weighted-average remaining lease term (years)
Operating leases6.446.63
Financing leases0.381.36
Weighted average discount rate
Operating leases3.32 %2.98 %
Financing leases3.29 %3.29 %

Maturities of lease liabilities are as follows:
Maturity of Lease Liabilities at December 31, 2024Operating Leases
(In millions)
2025$146 
2026115 
202774 
202856 
202940 
2030 and thereafter101 
Total lease payments$532 
Less: Interest56 
Present value of lease liabilities$476 
Leases LEASES
The company has operating and finance leases for real estate, transportation, certain machinery and equipment, and information technology assets. The company’s leases have remaining lease terms of approximately 1 to 38 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the company will exercise that option. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability.

Certain of the company's leases include residual value guarantees. These residual value guarantees are based on a percentage of the lessor's asset acquisition price and the amount of such guarantee generally declines over the course of the lease term. The portion of residual value guarantees that are probable of payment are included in the related lease liability. At December 31, 2024, the company has future maximum payments for residual value guarantees in operating leases of $215 million with final expirations through 2034. The company's lease agreements do not contain any material restrictive covenants.

The components of lease cost for the years ended December 31, 2024, 2023 and 2022 were as follows:
For the Year Ended December 31,
(In millions)202420232022
Operating lease cost$176 $169 $152 
Finance lease cost
Amortization of right-of-use assets1 1 1 
Total finance lease cost$1 $1 $1 
Short-term lease cost272318 
Variable lease cost8118 
Total lease cost$212 $204 $179 

Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows:
For the Year Ended December 31,
(In millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$188 $169 $155 
Financing cash outflows from finance leases$1 $1 $1 
New leases entered into during the years ended December 31, 2024 and 2023 were not material, on an individual basis. Supplemental balance sheet information related to leases is as follows:
(In millions)December 31, 2024December 31, 2023
Operating Leases
 
Operating lease right-of-use assets1
$414 $412 
Current operating lease liabilities2
134 131 
Noncurrent operating lease liabilities3
342 355 
Total operating lease liabilities
$476 $486 
Finance Leases
 
Property, plant, and equipment, gross
$14 $14 
Accumulated depreciation
(14)(13)
Property, plant, and equipment, net
$— $1 
Short-term borrowings and finance lease obligations— 1 
Long-term debt— 1 
Total finance lease liabilities$— $2 
1.Included in other assets in the Consolidated Balance Sheets.
2.Included in accrued and other current liabilities in the Consolidated Balance Sheets.
3.Included in other noncurrent obligations in the Consolidated Balance Sheets.

The company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.
Lease Term and Discount RateDecember 31, 2024December 31, 2023
Weighted-average remaining lease term (years)
Operating leases6.446.63
Financing leases0.381.36
Weighted average discount rate
Operating leases3.32 %2.98 %
Financing leases3.29 %3.29 %

Maturities of lease liabilities are as follows:
Maturity of Lease Liabilities at December 31, 2024Operating Leases
(In millions)
2025$146 
2026115 
202774 
202856 
202940 
2030 and thereafter101 
Total lease payments$532 
Less: Interest56 
Present value of lease liabilities$476