Leases
Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 16 years (land leases 3 to 73 years), some of which may include options to extend the leases for up to 6 years, and some of which may include options to terminate the leases within 1 year. As of December 31, 2025, assets recorded under finance leases amounted to $92 million and accumulated depreciation associated with finance leases was $28 million (December 31, 2024: $82 million and $25 million, respectively). Finance lease liabilities amounted to $15 million as of December 31, 2025 (December 31, 2024: $17 million).
Operating lease expense for each year was as follows:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| | | | | |
| Operating lease cost | 66 | | | 66 | | | 68 | |
| | | | | |
| Supplemental cash flows information related to operating lease as follow: | | | | | |
| Operating cash flows from operating leases | 64 | | | 64 | | | 66 | |
| | | | | |
| | | | | |
| | | | | |
| Right-of-use assets obtained in exchange for lease obligations | 28 | | | 78 | | | 55 | |
| | | | | |
| Weighted average remaining lease term | 7 years | | 7 years | | 6 years |
| | | | | |
| | | | | |
| Weighted average discount rate | 4 | % | | 4 | % | | 4 | % |
| | | | | |
Future minimum lease payments for operating leases as of December 31, 2025, were as follows: | | | | | |
| As of |
| December 31, 2025 |
| |
| 2026 | 69 | |
| 2027 | 58 | |
| 2028 | 51 | |
| 2029 | 38 | |
| 2030 | 29 | |
| Thereafter | 70 | |
| Total future minimum lease payments | 315 | |
| Less: imputed interest | 41 | |
| Total | 274 | |
Rent expense amounted to $15 million in 2025 compared to $12 million in 2024 and $11 million in 2023 (containing services related to leased assets as well as short-term leases).
Lease liabilities related to operating leases are split between current and non-current as follows: | | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 |
| Other current liabilities | 59 | | | 52 | |
| Other non-current liabilities | 215 | | | 223 | |
| Total | 274 | | | 275 | |
Operating lease right-of-use assets are $256 million as of December 31, 2025 (December 31, 2024: $265 million) and are included in other non-current assets in the balance sheets.
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.