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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
LEASES | NOTE F – LEASES We have operating and finance leases for real estate including corporate offices, land, warehouse space, and vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). We recognize lease expense on a straight-line basis over the lease term for short-term leases that we do not record on our balance sheet. If there is a change in our assessment of the lease term and, as a result, the remaining lease term extends more than 12 months from the end of the previously determined lease term, or we subsequently become reasonably certain that we will exercise an option to purchase the underlying asset, the lease no longer meets the definition of a short-term lease and is accounted for as either an operating or finance lease and recognized on the balance sheet. In accordance with FASB ASC Topic 842, we account for the lease components and the non-lease components as a single lease component, with the exception of our warehouse leases. Our leases have remaining lease terms of less than 1 year to approximately 52 years, some of which may include options to extend the leases for up to 10 years. If we are reasonably certain we will exercise an option to extend the lease, the time period covered by the extension option is included in the lease term. We determine whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of the arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Our operating lease right-of-use assets are presented within Other long-term assets and corresponding liabilities are presented within Other current liabilities and Other long-term liabilities on our consolidated balance sheets. In December 2024, a previously executed lease for additional office and warehouse space with a noncancellable lease term of 25 years commenced, resulting in the recognition of a $122 million finance lease right-of-use asset, recorded in Property, plant, and equipment, net, in our consolidated balance sheets, as well as a corresponding current finance lease liability of less than $1 million, and noncurrent finance lease liability of $123 million, recorded in Current debt obligations and Long-term debt, respectively, in our consolidated balance sheets. The discount rate used to calculate the initial right-of-use asset and corresponding liability was 4.8%. Refer to Note E – Contractual Obligations and Commitments for information regarding our finance leases. The following table presents supplemental balance sheet information related to our operating leases:
| As of December 31,
(in millions) | 2024 |  | 2023
Assets |  |  |
Operating lease right-of-use assets in Other long-term assets | $ | 449 |  |  | $ | 439 |
Liabilities |  |  |
Operating lease liabilities in Other current liabilities | 81 |  |  | 76 |
Operating lease liabilities in Other long-term liabilities | 401 |  |  | 390 |
The following table presents the weighted average remaining lease term and discount rate information related to our operating leases:
| As of December 31,
| 2024 |  | 2023
Weighted average remaining lease term | 9 years |  | 9 years
Weighted average discount rate | 3.9% |  | 4.5%
Our operating lease cost under FASB ASC Topic 842 was $98 million in 2024, $96 million in 2023 and $91 million in 2022. The following table presents supplemental cash flow information related to our operating leases:
| Year Ended December 31,
(in millions) | 2024 |  | 2023
Cash paid for amounts included in the measurement of operating lease liabilities |  |
Operating cash flows from operating leases | $ | 97 |  |  | $ | 93 |
Right-of-use assets obtained in exchange for operating lease obligations were $117 million and $123 million for the years ended December 31, 2024 and 2023, respectively. The following table presents the maturities of our operating lease liabilities as of December 31, 2024 (in millions):
Fiscal year | Operating Leases (1)
2025 | $ | 94 |
2026 | 84 |
2027 | 64 |
2028 | 52 |
2029 | 43 |
Thereafter | 227 |
Total future minimum operating lease payments | 564 |
Less: imputed interest | 82 |
Present value of operating lease liabilities | $ | 482 |
(1) Excludes expected lease payments for lease terms that have not yet commenced.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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