v3.25.4
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
OPERATING LEASES.

As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our ROU operating lease assets are recognized within Property, plant, and equipment – net in the Consolidated Statements of Financial Position. Our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities in the Consolidated Statements of Financial Position, as detailed below.

Operating Lease Assets and Liabilities
As of
December 31, 2025December 31, 2024
Operating lease ROU assets$410 $364 
Current operating lease liabilities134 115 
Non-current operating lease liabilities284 270 
Total operating lease liabilities$419 $385 

Operating Lease Expense
For the years ended December 31
202520242023
Long-term (fixed)$136 $134 $121 
Long-term (variable)101 120 106 
Short-term12 4 2 
Total operating lease expense$249 $258 $229 

Maturity of Lease Liabilities
20262027202820292030ThereafterTotal
Undiscounted lease payments$153 $116 $73 $42 $20 $56 $460 
Less: imputed interest41 
Total lease liability as of December 31, 2025
$419 
Supplemental Information Related to Operating Leases
For the years ended December 31
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities
$151$138$130
Right-of-use assets obtained in exchange for new lease liabilities162147154
Weighted-average remaining lease term (in years)4.64.44.7
Weighted-average discount rate4.4 %4.5 %4.4 %

FINANCE LEASES.

The Company leases equipment manufactured or sold by the Company to customers through sales-type leases. Sales-type leases are included in financing receivables and are recognized within All other current assets and All other non-current assets in the Consolidated Statements of Financial Position.

Finance lease income was $14 million, $14 million, and $13 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is recognized within Other (income) expense – net in the Consolidated Statements of Income.

Net Investment in Finance Leases
As of
December 31, 2025December 31, 2024
Minimum lease payments receivable
$243 $242 
Less: deferred income(30)(31)
Discounted lease receivable213 211 
Estimated unguaranteed residual value of leased assets, net of deferred income12 10 
Investment in finance leases, net of deferred income
$225 $221 

Contractual Maturities
Due In20262027202820292030ThereafterTotal
Minimum lease payments receivable
$86 $56 $39 $26 $16 $19 $243 
We expect actual maturities to differ from contractual maturities, primarily as a result of prepayments.
LEASES LEASES
OPERATING LEASES.

As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our ROU operating lease assets are recognized within Property, plant, and equipment – net in the Consolidated Statements of Financial Position. Our operating lease liabilities are recognized within All other current liabilities and All other non-current liabilities in the Consolidated Statements of Financial Position, as detailed below.

Operating Lease Assets and Liabilities
As of
December 31, 2025December 31, 2024
Operating lease ROU assets$410 $364 
Current operating lease liabilities134 115 
Non-current operating lease liabilities284 270 
Total operating lease liabilities$419 $385 

Operating Lease Expense
For the years ended December 31
202520242023
Long-term (fixed)$136 $134 $121 
Long-term (variable)101 120 106 
Short-term12 4 2 
Total operating lease expense$249 $258 $229 

Maturity of Lease Liabilities
20262027202820292030ThereafterTotal
Undiscounted lease payments$153 $116 $73 $42 $20 $56 $460 
Less: imputed interest41 
Total lease liability as of December 31, 2025
$419 
Supplemental Information Related to Operating Leases
For the years ended December 31
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities
$151$138$130
Right-of-use assets obtained in exchange for new lease liabilities162147154
Weighted-average remaining lease term (in years)4.64.44.7
Weighted-average discount rate4.4 %4.5 %4.4 %

FINANCE LEASES.

The Company leases equipment manufactured or sold by the Company to customers through sales-type leases. Sales-type leases are included in financing receivables and are recognized within All other current assets and All other non-current assets in the Consolidated Statements of Financial Position.

Finance lease income was $14 million, $14 million, and $13 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is recognized within Other (income) expense – net in the Consolidated Statements of Income.

Net Investment in Finance Leases
As of
December 31, 2025December 31, 2024
Minimum lease payments receivable
$243 $242 
Less: deferred income(30)(31)
Discounted lease receivable213 211 
Estimated unguaranteed residual value of leased assets, net of deferred income12 10 
Investment in finance leases, net of deferred income
$225 $221 

Contractual Maturities
Due In20262027202820292030ThereafterTotal
Minimum lease payments receivable
$86 $56 $39 $26 $16 $19 $243 
We expect actual maturities to differ from contractual maturities, primarily as a result of prepayments.