LyondellBasell Industries N.V.LYB

LyondellBasell Industries N.V. Leases Disclosure

10-KFiled Feb 20, 20262 min read
Leases
Operating Leases—The majority of our leases are operating leases. We lease storage tanks, terminal facilities, land, office facilities, railcars, pipelines, barges, plant equipment and other equipment. As of December 31, 2025 and 2024, our Operating lease assets were $1,514 million and $1,467 million, respectively. As of December 31, 2025 and 2024, Operating lease liabilities totaled $1,697 million and $1,774 million of which $370 million and $355 million, respectively, are current and recorded in Accrued and other current liabilities. These values were derived using a weighted average discount rate of 4.2% and 4.1% as of December 31, 2025 and 2024, respectively.
Substantially all of our operating leases have remaining lease terms of 21 years or less and have a weighted-average remaining lease term of 9 years. Certain lease agreements include options to renew the lease, at our discretion, for approximately 1 year to 20 years and do not materially impact our operating lease assets or operating lease liabilities.
Maturities of operating lease liabilities as of December 31, 2025, are as follows:
Millions of dollars
2026$418 
2027335 
2028240 
2029157 
2030129 
Thereafter797 
Total lease payments2,076 
Less: Imputed interest(379)
Present value of lease liabilities$1,697 
Operating lease costs were $440 million, $395 million and $368 million for the years ended December 31, 2025, 2024 and 2023, respectively, which are reflected in the Consolidated Statements of Income.
Cash paid for amounts included in the measurement of Operating lease liabilities totaled $458 million, $454 million and $447 million for the years ended December 31, 2025, 2024 and 2023, respectively. Leased assets obtained in exchange for new operating lease liabilities totaled $332 million, $383 million and $312 million for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, we have entered into operating leases, with an undiscounted value of $45 million, that have not yet commenced. These leases which will commence in 2026 have lease terms ranging from 5 to 7 years.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021

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.

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