11. Leases
In the normal course of its business, the Company enters into various leases as the lessee, primarily related to property. The Company also leases plant and machinery, vehicles and equipment.
Lease liabilities as of December 31 were:
| | | | | | | | |
| in $ millions | 2025 | 2024 |
| Current: | | |
| Operating lease liabilities | 286 | 265 |
| Finance lease liabilities | 116 | 67 |
| | |
| Noncurrent: | | |
| Operating lease liabilities | 1,232 | 1,074 |
| Finance lease liabilities | 418 | 190 |
| Total lease liabilities | 2,052 | 1,596 |
The current portion of finance lease liabilities is included within Other current liabilities and the noncurrent portion of finance lease liabilities is included within Other noncurrent liabilities in the Consolidated Balance Sheets.
The maturity analysis for the discounted and undiscounted lease liability arising from the Company’s leasing activities as of December 31, 2025, was:
| | | | | | | | |
| in $ millions | Operating leases | Finance leases |
| 2026 | 311 | 121 |
| 2027 | 253 | 132 |
| 2028 | 214 | 85 |
| 2029 | 172 | 58 |
| 2030 | 143 | 88 |
| Thereafter | 790 | 225 |
| Total minimum lease payments | 1,883 | 709 |
| Less: lease payments representing interest | (365) | (175) |
| Present value of future minimum lease payments | 1,518 | 534 |
| Less: current portion of lease liabilities | (286) | (116) |
| Noncurrent portion of lease liabilities | 1,232 | 418 |
The projections are based on the foreign exchange rates applied at the end of the relevant fiscal year and on interest rates (discounted projections only) applicable to the lease portfolio.
The components of lease expense for the years ended December 31 were:
| | | | | | | | | | | |
| in $ millions | 2025 | 2024 | 2023 |
| Finance leases | | | |
| Amortization of right-of-use-assets | 78 | 45 | 19 |
| Interest on lease liabilities | 22 | 7 | 3 |
| Operating leases | 292 | 262 | 293 |
| Short-term leases | 319 | 301 | 329 |
| Variable leases | 78 | 80 | 85 |
| Total lease expense (i) | 789 | 695 | 729 |
(i) Income from subleasing transactions is not material for the Company.
The weighted average remaining lease term and discount rates as of December 31 were:
| | | | | | | | |
| 2025 | 2024 |
| Weighted average remaining lease term (years) | | |
| Operating leases | 10 | 10 |
| Finance leases | 10 | 11 |
| Weighted average discount rate (%) | | |
| Operating leases | 4.32 | % | 3.86 | % |
| Finance leases | 4.94 | % | 5.10 | % |
The supplemental cash flow information for the years ended December 31 was:
| | | | | | | | | | | |
| in $ millions | 2025 | 2024 | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | |
| Operating cash flows from operating leases | (310) | (287) | (276) |
| Financing cash flows from finance leases | (131) | (57) | (26) |
| Non-cash investing and financing activities | | | |
| Leased assets obtained in exchange for new operating lease liabilities | 365 | 195 | 232 |
| Leased assets obtained in exchange for new finance lease liabilities | 153 | 99 | 51 |
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.