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Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

We lease certain locomotives, freight cars, and other property for use in our rail operations.

The following are additional details related to our lease portfolio:

Millions			Classification			Dec 31, 2024			Dec 31, 2023
Assets
Operating leases			Operating lease assets			$	1,297		$	1,643
Finance leases			Properties, net [a]			172			244
Total leased assets						$	1,469		$	1,887
Liabilities
Current
Operating			Accounts payable and other current liabilities			$	346		$	355
Finance			Debt due within one year			37			49
Noncurrent
Operating			Operating lease liabilities			925			1,245
Finance			Debt due after one year			72			109
Total lease liabilities						$	1,380		$	1,758

[a]Finance lease assets are recorded net of accumulated amortization of $472 million and $497 million as of December 31, 2024 and 2023, respectively.

The lease cost components are classified as follows:

Millions			Dec 31, 2024			Dec 31, 2023
Operating lease cost [a]			$	340		$	369
Short-term lease cost			24			24
Variable lease cost			37			41
Finance lease cost
Amortization of leased assets [b]			31			38
Interest on lease liabilities [c]			5			8
Net lease cost			$	437		$	480

[a]Operating lease cost is primarily reported in equipment and other rents in our Consolidated Statements of Income.

[b]Amortization of leased assets is reported in depreciation in our Consolidated Statements of Income.

[c]Interest on lease liabilities is reported in interest expense in our Consolidated Statements of Income.

The following table presents aggregate lease maturities as of December 31, 2024:

Millions			Operating Leases			Finance Leases			Total
2025			$	352		$	42		$	394
2026			281			35			316
2027			227			30			257
2028			200			11			211
2029			128			-			128
After 2029			213			-			213
Total lease payments			$	1,401		$	118		$	1,519
Less: Interest			130			9			139
Present value of lease liabilities			$	1,271		$	109		$	1,380

The following table presents the weighted average remaining lease term and discount rate:

			Dec 31, 2024
Weighted-average remaining lease term (years)
Operating leases			5.4
Finance leases			2.8
Weighted-average discount rate (%)
Operating leases			3.8
Finance leases			4.4

The following table presents other information related to our operating and finance leases for the years ended December 31:

Millions			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases			$	319		$	323
Investing cash flows from operating leases			32			33
Operating cash flows from finance leases			6			9
Financing cash flows from finance leases			47			65
Leased assets obtained in exchange for operating lease liabilities			$	119		$	241

Leases

Leases

We lease certain locomotives, freight cars, and other property for use in our rail operations.

The following are additional details related to our lease portfolio:

Millions			Classification			Dec 31, 2024			Dec 31, 2023
Assets
Operating leases			Operating lease assets			$	1,297		$	1,643
Finance leases			Properties, net [a]			172			244
Total leased assets						$	1,469		$	1,887
Liabilities
Current
Operating			Accounts payable and other current liabilities			$	346		$	355
Finance			Debt due within one year			37			49
Noncurrent
Operating			Operating lease liabilities			925			1,245
Finance			Debt due after one year			72			109
Total lease liabilities						$	1,380		$	1,758

[a]Finance lease assets are recorded net of accumulated amortization of $472 million and $497 million as of December 31, 2024 and 2023, respectively.

The lease cost components are classified as follows:

Millions			Dec 31, 2024			Dec 31, 2023
Operating lease cost [a]			$	340		$	369
Short-term lease cost			24			24
Variable lease cost			37			41
Finance lease cost
Amortization of leased assets [b]			31			38
Interest on lease liabilities [c]			5			8
Net lease cost			$	437		$	480

[a]Operating lease cost is primarily reported in equipment and other rents in our Consolidated Statements of Income.

[b]Amortization of leased assets is reported in depreciation in our Consolidated Statements of Income.

[c]Interest on lease liabilities is reported in interest expense in our Consolidated Statements of Income.

The following table presents aggregate lease maturities as of December 31, 2024:

Millions			Operating Leases			Finance Leases			Total
2025			$	352		$	42		$	394
2026			281			35			316
2027			227			30			257
2028			200			11			211
2029			128			-			128
After 2029			213			-			213
Total lease payments			$	1,401		$	118		$	1,519
Less: Interest			130			9			139
Present value of lease liabilities			$	1,271		$	109		$	1,380

The following table presents the weighted average remaining lease term and discount rate:

			Dec 31, 2024
Weighted-average remaining lease term (years)
Operating leases			5.4
Finance leases			2.8
Weighted-average discount rate (%)
Operating leases			3.8
Finance leases			4.4

The following table presents other information related to our operating and finance leases for the years ended December 31:

Millions			2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases			$	319		$	323
Investing cash flows from operating leases			32			33
Operating cash flows from finance leases			6			9
Financing cash flows from finance leases			47			65
Leased assets obtained in exchange for operating lease liabilities			$	119		$	241

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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

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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

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