LEASES

12 Months Ended

Dec. 31, 2024

The Company leases certain fulfillment, cross-docking and service centers, office space, aircraft, aircraft hangars, machines and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases was as follows:


	December 31,
	2024		2023
Operating Leases	(In millions)
Operating lease right-of-use assets	$	1,098	$	899

Operating lease liabilities	$	1,135	$	838

Finance Leases
Property and equipment, at cost	$	208	$	183
Accumulated depreciation	(85)		(50)
Property and equipment, net	$	123	$	133

Loans payable and other financial liabilities	$	122	$	131

The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases as of December 31, 2024:


	December 31,
	2024		2023
Weighted average remaining lease term
Operating leases	8 Years		8 Years
Finance leases	3 Years		3 Years

Weighted average discount rate (1)
Operating leases	10	%	9	%
Finance leases	10	%	14	%

(1) Includes discount rates of leases in local currency and U.S dollar.

The components of lease expense were as follows:


	Year Ended December 31,
	2024		2023		2022
	(In millions)
Operating lease cost	$	228	$	173	$	128

Finance lease cost:
Depreciation of property and equipment	35		22		18
Interest on lease liabilities	15		13		8
Total finance lease cost	$	50	$	35	$	26

Variable lease cost (1)	$	25	$	35	$	17

(1) Variable lease payments are expensed as incurred and include charges such as flight hours above minimum, fuel, among others.

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:	(In millions)
Operating cash flows from operating leases	$	189	$	168	$	117
Financing cash flows from finance leases	51		33		20

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates and internal rates of return to calculate the lease liabilities for the operating and finance leases, respectively:


Year ending	Operating Leases		Finance Leases
	(In millions)
One year or less	$	258	$	49
One year to two years	236		42
Two years to three years	213		34
Three years to four years	197		15
Four years to five years	167		1
Thereafter	527		—
Total lease payments	1,598		141
Less imputed interest	(463)		(19)
Total	$	1,135	$	122