v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases Leases
We lease certain locomotives, freight cars, and other property for use in our rail operations.
The following are details related to our lease portfolio as of December 31:
MillionsClassification20252024
Assets
Operating leasesOperating lease assets$1,036 $1,297 
Finance leasesProperties, net [a]185 172 
Total leased assets$1,221 $1,469 
Liabilities
Current
OperatingAccounts payable and other current liabilities$270 $346 
FinanceDebt due within one year39 37 
Noncurrent
OperatingOperating lease liabilities738 925 
FinanceDebt due after one year66 72 
Total lease liabilities$1,113 $1,380 
[a]Finance lease assets are recorded net of accumulated amortization of $456 million and $472 million as of December 31, 2025 and 2024, respectively.
The following table presents the classification of lease cost components for the year-ended December 31:
Millions20252024
Operating lease cost [a]$305 $340 
Short-term lease cost23 24 
Variable lease cost39 37 
Finance lease cost
Amortization of leased assets [b]28 31 
Interest on lease liabilities [c]5 5 
Net lease cost$400 $437 
[a]Operating lease cost is primarily reported in equipment and other rents in our Consolidated Statements of Income.
[b]Amortization of leased assets is reported in depreciation in our Consolidated Statements of Income.
[c]Interest on lease liabilities is reported in interest expense in our Consolidated Statements of Income.
The following table presents aggregate lease maturities as of December 31, 2025:
MillionsOperating leasesFinance leasesTotal
2026$276 $42 $318 
2027238 37 275 
2028191 14 205 
2029123 21 144 
2030121 - 121 
After 2030176 - 176 
Total lease payments$1,125 $114 $1,239 
Less: Interest117 9 126 
Present value of lease liabilities$1,008 $105 $1,113 
The following table presents the weighted average remaining lease term and discount rate as of December 31:
2025
Weighted-average remaining lease term (years)
Operating leases5.4
Finance leases2.6
Weighted-average discount rate (%)
Operating leases4.0 
Finance leases4.5 
The following table presents other information related to our operating and finance leases for the years ended December 31:
Millions20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$310 $319 
Investing cash flows from operating leases32 32 
Operating cash flows from finance leases4 6 
Financing cash flows from finance leases36 47 
Leased assets obtained in exchange for operating lease liabilities$198 $119 
Leases Leases
We lease certain locomotives, freight cars, and other property for use in our rail operations.
The following are details related to our lease portfolio as of December 31:
MillionsClassification20252024
Assets
Operating leasesOperating lease assets$1,036 $1,297 
Finance leasesProperties, net [a]185 172 
Total leased assets$1,221 $1,469 
Liabilities
Current
OperatingAccounts payable and other current liabilities$270 $346 
FinanceDebt due within one year39 37 
Noncurrent
OperatingOperating lease liabilities738 925 
FinanceDebt due after one year66 72 
Total lease liabilities$1,113 $1,380 
[a]Finance lease assets are recorded net of accumulated amortization of $456 million and $472 million as of December 31, 2025 and 2024, respectively.
The following table presents the classification of lease cost components for the year-ended December 31:
Millions20252024
Operating lease cost [a]$305 $340 
Short-term lease cost23 24 
Variable lease cost39 37 
Finance lease cost
Amortization of leased assets [b]28 31 
Interest on lease liabilities [c]5 5 
Net lease cost$400 $437 
[a]Operating lease cost is primarily reported in equipment and other rents in our Consolidated Statements of Income.
[b]Amortization of leased assets is reported in depreciation in our Consolidated Statements of Income.
[c]Interest on lease liabilities is reported in interest expense in our Consolidated Statements of Income.
The following table presents aggregate lease maturities as of December 31, 2025:
MillionsOperating leasesFinance leasesTotal
2026$276 $42 $318 
2027238 37 275 
2028191 14 205 
2029123 21 144 
2030121 - 121 
After 2030176 - 176 
Total lease payments$1,125 $114 $1,239 
Less: Interest117 9 126 
Present value of lease liabilities$1,008 $105 $1,113 
The following table presents the weighted average remaining lease term and discount rate as of December 31:
2025
Weighted-average remaining lease term (years)
Operating leases5.4
Finance leases2.6
Weighted-average discount rate (%)
Operating leases4.0 
Finance leases4.5 
The following table presents other information related to our operating and finance leases for the years ended December 31:
Millions20252024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$310 $319 
Investing cash flows from operating leases32 32 
Operating cash flows from finance leases4 6 
Financing cash flows from finance leases36 47 
Leased assets obtained in exchange for operating lease liabilities$198 $119