Leases

12 Months Ended

Dec. 31, 2024

8. Leases

The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company intends to exercise a lease option at inception due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews new agreements to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates.

Components of leases are as follows (in millions):


	December 31,
	2024		2023
Current portion of lease liabilities:
Operating	$	72	$	70
Financing		30		24
Total	$	102	$	94

	December 31,
	2024		2023
Long-term portion of lease liability:
Operating	$	301	$	343
Financing		243		215
Total	$	544	$	558

Components of lease expense were as follows (in millions):


	Year Ended December 31,
	2024			2023
Lease cost
Finance lease cost
Amortization of right-of-use assets	$	28		$	23
Interest on lease liabilities		10			10
Operating lease cost		90			85
Short-term lease cost		69			77
Sub-lease income		(6	)		(8	)
Total	$	191		$	187

Supplemental information related to the Company’s leases is as follows (in millions):


	Years Ended
	2024			2023
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	10		$	10
Operating cash flows - operating leases		90			85
Financing cash flows - finance leases		28			23
Right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	65		$	68
Finance lease liabilities		28			27

Weighted average remaining lease term at December 31, 2024:
Operating leases	11 years			10 years
Finance leases	16 years			16 years
Weighted average discount rate at December 31, 2024:
Operating leases		5.25	%		5.17	%
Finance leases		4.42	%		4.15	%

Future minimum lease commitments for leases with initial or remaining terms of one year or more at December 31, 2024, are payable as follows (in millions):


	Operating			Finance
2025	$	91		$	41
2026		75			36
2027		58			29
2028		47			23
2029		36			20
Thereafter		175			190
Total lease payments		482			339
Less: Interest		(109	)		(66	)
Present value of lease liabilities	$	373		$	273