LEASES

12 Months Ended

Dec. 31, 2024

The Company leases certain properties, buildings and equipment (including branches, warehouses, DCs and office space) under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases that expire at various dates through 2037.

Information related to operating leases is as follows (in millions of dollars):


	As of December 31,
	2024		2023
Right-of-use assets
Operating lease right-of-use	$	371	$	429



Operating lease liabilities
Operating lease liability	78		71
Long-term operating lease liability	327		381
Total operating lease liabilities	$	405	$	452


	As of December 31,
	2024			2023
Weighted average remaining lease term	6 years			7 years
Weighted average incremental borrowing rate	2.57		%	2.19		%
Cash paid for operating leases	$	96		$	88
Right-of-use assets obtained in exchange for operating lease obligations	$	48		$	161

Rent expense was $103 million, $102 million and $93 million for 2024, 2023 and 2022, respectively. These amounts are net of sublease income of $2 million for 2024, 2023 and 2022.

The remaining maturity of existing lease liabilities as of December 31, 2024 are as follows (in millions of dollars):


Year	Operating Leases
2025	$	91
2026	85
2027	72
2028	63
2029	50
Thereafter	76
Total lease payments	437
Less interest	32
Present value of lease liabilities	$	405

As of December 31, 2024 and 2023, the Company's finance leases and service contracts with lease arrangements were not material. Finance leases are reported in Property, buildings and equipment – net, and as a short and long-term finance lease liability in Accrued expenses and Other non-current liabilities.