v3.25.4

Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | Leases Most of our leases are real estate leases. In addition, we lease trucks, trailers and material handling equipment. The components of our lease expense were as follows:
|  | Years Ended December 31,
(In millions) |  | 2025 |  | 2024 |  | 2023
Operating lease cost |  | $ | 225 |  |  | $ | 213 |  |  | $ | 199 |
Short-term lease cost |  | 38 |  |  | 39 |  |  | 47 |
Variable lease cost |  | 25 |  |  | 33 |  |  | 27 |
Total operating lease cost |  | $ | 288 |  |  | $ | 285 |  |  | $ | 273 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  | $ | 60 |  |  | $ | 61 |  |  | $ | 59 |
Interest on lease liabilities |  | 8 |  |  | 8 |  |  | 6 |
Total finance lease cost |  | $ | 68 |  |  | $ | 69 |  |  | $ | 65 |
Total lease cost |  | $ | 356 |  |  | $ | 354 |  |  | $ | 338 |
Supplemental balance sheet information related to leases was as follows:
|  | December 31,
(In millions) |  | 2025 |  | 2024
Operating leases: |  |  |  |
Operating lease assets |  | $ | 777 |  |  | $ | 727 |
Short-term operating lease liabilities |  | $ | 166 |  |  | $ | 127 |
Operating lease liabilities |  | 611 |  |  | 603 |
Total operating lease liabilities |  | $ | 777 |  |  | $ | 730 |
Finance leases: |  |  |  |
Property and equipment, gross |  | $ | 471 |  |  | $ | 408 |
Accumulated depreciation |  | (235) |  |  | (205) |
Property and equipment, net |  | $ | 236 |  |  | $ | 203 |
Short-term borrowings and current maturities of long-term debt |  | $ | 54 |  |  | $ | 52 |
Long-term debt |  | 195 |  |  | 158 |
Total finance lease liabilities |  | $ | 248 |  |  | $ | 210 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 7 years
Finance leases |  | 7 years |  | 8 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 5.46 | % |  | 5.47 | %
Finance leases |  | 3.88 | % |  | 3.69 | %
Supplemental cash flow information related to leases was as follows:
|  | Years Ended December 31,
(In millions) |  | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 247 |  |  | $ | 216 |  |  | $ | 201 |
Operating cash flows for finance leases |  | 8 |  |  | 8 |  |  | 6 |
Financing cash flows for finance leases |  | 63 |  |  | 72 |  |  | 68 |
Leased assets obtained in exchange for new lease obligations: |  |  |  |  |  |
Operating leases |  | 220 |  |  | 207 |  |  | 118 |
Finance leases |  | 80 |  |  | 47 |  |  | 94 |
Net operating lease activity, including the reduction of the operating lease asset and the accretion of the operating lease liability, are reflected in operating activities on our Consolidated Statements of Cash Flows. Maturities of lease liabilities as of December 31, 2025 were as follows:
(In millions) |  | Finance Leases |  | Operating Leases
2026 |  | $ | 62 |  |  | $ | 204 |
2027 |  | 59 |  |  | 188 |
2028 |  | 46 |  |  | 145 |
2029 |  | 36 |  |  | 105 |
2030 |  | 28 |  |  | 78 |
Thereafter |  | 63 |  |  | 220 |
Total lease payments |  | 294 |  |  | 941 |
Less: interest |  | (45) |  |  | (163) |
Present value of lease liabilities |  | $ | 248 |  |  | $ | 777 |
As of December 31, 2025, we had additional operating leases that have not yet commenced with future undiscounted lease payments of $75 million. These operating leases will commence in 2026 with initial lease terms of 4 years to 15 years.
Leases | Leases Most of our leases are real estate leases. In addition, we lease trucks, trailers and material handling equipment. The components of our lease expense were as follows:
|  | Years Ended December 31,
(In millions) |  | 2025 |  | 2024 |  | 2023
Operating lease cost |  | $ | 225 |  |  | $ | 213 |  |  | $ | 199 |
Short-term lease cost |  | 38 |  |  | 39 |  |  | 47 |
Variable lease cost |  | 25 |  |  | 33 |  |  | 27 |
Total operating lease cost |  | $ | 288 |  |  | $ | 285 |  |  | $ | 273 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  | $ | 60 |  |  | $ | 61 |  |  | $ | 59 |
Interest on lease liabilities |  | 8 |  |  | 8 |  |  | 6 |
Total finance lease cost |  | $ | 68 |  |  | $ | 69 |  |  | $ | 65 |
Total lease cost |  | $ | 356 |  |  | $ | 354 |  |  | $ | 338 |
Supplemental balance sheet information related to leases was as follows:
|  | December 31,
(In millions) |  | 2025 |  | 2024
Operating leases: |  |  |  |
Operating lease assets |  | $ | 777 |  |  | $ | 727 |
Short-term operating lease liabilities |  | $ | 166 |  |  | $ | 127 |
Operating lease liabilities |  | 611 |  |  | 603 |
Total operating lease liabilities |  | $ | 777 |  |  | $ | 730 |
Finance leases: |  |  |  |
Property and equipment, gross |  | $ | 471 |  |  | $ | 408 |
Accumulated depreciation |  | (235) |  |  | (205) |
Property and equipment, net |  | $ | 236 |  |  | $ | 203 |
Short-term borrowings and current maturities of long-term debt |  | $ | 54 |  |  | $ | 52 |
Long-term debt |  | 195 |  |  | 158 |
Total finance lease liabilities |  | $ | 248 |  |  | $ | 210 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 6 years |  | 7 years
Finance leases |  | 7 years |  | 8 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 5.46 | % |  | 5.47 | %
Finance leases |  | 3.88 | % |  | 3.69 | %
Supplemental cash flow information related to leases was as follows:
|  | Years Ended December 31,
(In millions) |  | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 247 |  |  | $ | 216 |  |  | $ | 201 |
Operating cash flows for finance leases |  | 8 |  |  | 8 |  |  | 6 |
Financing cash flows for finance leases |  | 63 |  |  | 72 |  |  | 68 |
Leased assets obtained in exchange for new lease obligations: |  |  |  |  |  |
Operating leases |  | 220 |  |  | 207 |  |  | 118 |
Finance leases |  | 80 |  |  | 47 |  |  | 94 |
Net operating lease activity, including the reduction of the operating lease asset and the accretion of the operating lease liability, are reflected in operating activities on our Consolidated Statements of Cash Flows. Maturities of lease liabilities as of December 31, 2025 were as follows:
(In millions) |  | Finance Leases |  | Operating Leases
2026 |  | $ | 62 |  |  | $ | 204 |
2027 |  | 59 |  |  | 188 |
2028 |  | 46 |  |  | 145 |
2029 |  | 36 |  |  | 105 |
2030 |  | 28 |  |  | 78 |
Thereafter |  | 63 |  |  | 220 |
Total lease payments |  | 294 |  |  | 941 |
Less: interest |  | (45) |  |  | (163) |
Present value of lease liabilities |  | $ | 248 |  |  | $ | 777 |
As of December 31, 2025, we had additional operating leases that have not yet commenced with future undiscounted lease payments of $75 million. These operating leases will commence in 2026 with initial lease terms of 4 years to 15 years.

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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 + Details
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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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