LEASES
Operating Lease Liabilities. 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 operating lease liabilities are included in All other current
liabilities and All other liabilities in our Consolidated and Combined Statement of Financial Position, as detailed below.
December 31
2025
2024
Current portion of operating lease liability
$183
$163
Noncurrent portion of operating lease liability
661
562
Total operating lease liability
$843
$725
OPERATING LEASE EXPENSE
2025
2024
2023
Long-term (fixed)
$220
$194
$205
Long-term (variable)
21
47
49
Short-term
14
25
63
Total operating lease expense
$255
$265
$317
MATURITY OF LEASE LIABILITIES
2026
2027
2028
2029
2030
Thereafter
Total
Undiscounted lease payments
$217
$179
$150
$102
$79
$276
$1,003
Less: Imputed interest
(160)
Total lease liability as of December 31, 2025
$843
SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES
2025
2024
2023
Operating cash flows used for operating leases
$225
$242
$214
Right-of-use assets obtained in exchange for new lease liabilities
309
259
278
Weighted-average remaining lease term as of December 31
7.1 years
7.3 years
7.1 years
Weighted-average discount rate as of December 31
4.6%
4.4%
4.0%
Finance Lease Liabilities. Our finance lease liabilities are included in All other current liabilities and All other liabilities in our Consolidated
and Combined Statement of Financial Position, as detailed below. Our finance leases have a weighted-average remaining lease term of
12.0 years and a weighted-average discount rate of 2.8% as of December 31, 2025.
December 31
2025
2024
Current portion of finance lease liability
$24
$18
Noncurrent portion of finance lease liability
254
248
Total finance lease liability
$278
$266

Historical Timeline

Fiscal YearFiled
2025Jan 29, 2026Showing above
2024Feb 6, 2025

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.