14. Leases

The components of lease expense were as follows:

December 31,

($ in millions)

2025

  ​ ​ ​

2024

Operating lease expense

$

(97)

$

(98)

Financing lease expense

(2)

(4)

Variable lease expense

(14)

(11)

Sublease income

1

2

Net lease expense

$

(112)

$

(111)

Supplemental cash flow information related to leases was as follows:

December 31,

($ in millions)

2025

  ​ ​ ​

2024

Cash paid for amounts included in the measurements of lease liabilities:

Operating cash outflows for operating leases

$

(101)

$

(97)

Financing cash outflows for finance leases

(3)

(3)

ROU assets obtained in exchange for:

Operating lease obligations

102

53

Finance lease obligations

2

24

Supplemental balance sheet information related to leases was as follows:

December 31,

($ in millions)

Balance Sheet Location

2025

2024

Operating leases:

Operating lease ROU asset

Other assets

$

355

$

334

Current operating lease liabilities

Other current liabilities

78

79

Noncurrent operating lease liabilities

Other liabilities

283

265

Finance leases:

Finance lease ROU assets, net

Property, plant and equipment, net

7

31

Current finance lease liabilities

Short-term debt and current portion of long-term debt

2

26

Noncurrent finance lease liabilities

Long-term debt

6

5

Weighted average remaining lease term and weighted average discount rate for the company’s leases were as follows:

December 31,

2025

2024

Weighted average remaining lease term in years:

Operating leases

7

7

Finance leases

5

1

Weighted average discount rate:

Operating leases

4.8

%

4.4

%

Finance leases

3.6

%

4.8

%

Maturities of lease liabilities are as follows:

($ in millions)

Operating Leases

Finance Leases

2026

$

83

$

2

2027

75

1

2028

60

1

2029

45

1

2030

38

1

Thereafter

110

2

Future value of lease liabilities

411

8

Less: Imputed interest

(50)

Present value of lease liabilities

$

361

$

8

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025
2023Feb 20, 2024
2022Feb 21, 2023
2021Feb 16, 2022
2020Feb 17, 2021
2019Feb 19, 2020
2018Feb 22, 2019
2017Mar 1, 2018
2016Mar 2, 2017
2015Feb 16, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.