Leases

12 Months Ended

Dec. 31, 2024

The Company records ROU assets and lease liabilities for non-cancelable operating leases primarily for real estate and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Expense related to leases is recorded on a straight-line basis over the lease term, including rent holidays. The Company recognized operating lease expense of $108 million and $349 million during the years ended December 31, 2024 and 2023, respectively.

The Company considers the existence of options to extend or terminate leases in its analysis of the lease term for the purposes of measuring its ROU assets and lease liabilities. The renewal options are not included in the measurement of the ROU assets and lease liabilities unless the Company is reasonably certain to exercise the optional renewal periods.

The following table sets forth the ROU assets and lease liabilities ($ in millions):


	December 31, 2024		December 31, 2023
Assets

ROU assets (recorded within other long-term assets)	$	359	$	396

Liabilities
Short-term (recorded within accounts payable and accrued expenses)	$	158	$	168
Long-term (recorded within other long-term liabilities)	738		880
Total lease liabilities	$	896	$	1,048

Cash paid for amounts included in the measurement of lease liabilities, recorded as operating cash flows in the Consolidated Statements of Cash Flows, was $227 million and $378 million during the years ended December 31, 2024 and 2023, respectively. New operating leases commenced resulting in the recognition of ROU assets and lease liabilities of $69 million and $40 million during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024, the Company had additional operating leases that have not yet commenced of $8 million. These operating leases will commence in 2025 with lease terms of approximately five years.

As part of the real estate optimization initiative as described in Note 6. Property, Software and Equipment, the Company vacated and abandoned various domestic leased properties. As a result, the Company assessed the ROU assets for impairment. The Company engaged a third-party real estate specialist to determine the recoverability of the leased properties. The valuation primarily considered comparable leased properties in each market and the assessment of potential future rental income that could be generated by the ROU assets.

As a result of the real estate optimization initiative, the Company recognized $40 million and $577 million of ROU asset impairments for the years ended December 31, 2023 and 2022, respectively. The remainder of the $97 million and $1,627 million real estate optimization impairment charges for the years ended December 31, 2023 and 2022, respectively, was related to Property, Software and Equipment, refer to Note 6. Property, Software and Equipment. No impairment charges related to this optimization occurred in 2024.

As of December 31, 2024, the weighted average remaining lease term for the Company was 7.5 years. The lease liabilities as of December 31, 2024, reflect a weighted average discount rate of 3.4%.

Lease payments over the next five years and thereafter are as follows ($ in millions):


	Lease Payments
2025	$	185
2026	157
2027	134
2028	112
2029	98
Thereafter	334
Total lease payments	1,020
Less: imputed interest	(124)
Total lease liabilities	$	896