Leases
We lease certain facilities and equipment related primarily to R&D, administrative and commercial activities. Leases with terms of 12 months or less are expensed as incurred and are not recorded in the Consolidated Balance Sheets.
Most leases include one or more options to renew, with renewal terms that may extend the lease term up to ten years. The exercise of lease renewal options is at our sole discretion. In addition, some of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements neither contain residual value guarantees nor impose significant restrictions or covenants. We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases from former R&D and administrative spaces.
The following table summarizes information related to our leases, all of which are classified as operating, included in our Consolidated Balance Sheets (in millions):
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| | December 31, |
| Consolidated Balance Sheets locations | | 2025 | | 2024 |
| Assets: | | | | |
| Other noncurrent assets | | $ | 602 | | | $ | 557 | |
| Liabilities: | | | | |
| Accrued liabilities | | $ | 135 | | | $ | 107 | |
| Other noncurrent liabilities | | 696 | | | 673 | |
| Total lease liabilities | | $ | 831 | | | $ | 780 | |
The components of net lease costs were as follows (in millions):
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| | Years ended December 31, |
| Lease costs | | 2025 | | 2024 | | 2023 |
Operating(1) | | $ | 265 | | | $ | 219 | | | $ | 208 | |
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| Sublease income | | (9) | | | (17) | | | (28) | |
| Total net lease costs | | $ | 256 | | | $ | 202 | | | $ | 180 | |
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(1) Includes short-term leases and variable lease costs, which were not material for the years ended December 31, 2025, 2024 and 2023.
Maturities of lease liabilities as of December 31, 2025, were as follows (in millions):
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| Maturity dates | | Amounts | | | | |
| 2026 | | $ | 148 | | | | | |
| 2027 | | 153 | | | | | |
| 2028 | | 128 | | | | | |
| 2029 | | 99 | | | | | |
| 2030 | | 77 | | | | | |
| Thereafter | | 362 | | | | | |
Total lease payments(1) | | 967 | | | | | |
| Less imputed interest | | (136) | | | | | |
| Present value of lease liabilities | | $ | 831 | | | | | |
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(1) Includes future rental commitments for properties that have been subleased in the amount of $99 million. We expect to receive total future rental income of $54 million related to noncancellable subleases.
The weighted-average remaining lease terms and weighted-average discount rates were as follows:
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| | | | December 31, |
| | | | 2025 | | 2024 |
| Weighted-average remaining lease term (in years) | | | | 8.7 | | 9.3 |
| Weighted-average discount rate | | | | 4.0 | % | | 3.7 | % |
Cash and noncash information related to our leases was as follows (in millions):
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| | | | Years ended December 31, |
| | | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | |
| Operating cash flows for operating leases | | | | $ | 157 | | | $ | 156 | | | $ | 182 | |
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| ROU assets obtained in exchange for lease obligations: | | | | | | | | |
| Operating leases | | | | $ | 217 | | | $ | 126 | | | $ | 245 | |
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As of December 31, 2025, there were no future lease payments for leases that have not yet commenced.