v3.25.4
Leasing Arrangements (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Components of Net Lease Cost, and Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases
The components of net lease cost were as follows:
(dollars in millions)
Years Ended December 31,Classification202520242023
Operating lease cost(1)
Cost of services
Selling, general and administrative expense		$5,731 $5,607 $5,432 
Finance lease cost:
Amortization of right-of-use assetsDepreciation and amortization expense584 329 259 
Interest on lease liabilitiesInterest expense116 98 69 
Short-term lease cost(1)
Cost of services
Selling, general and administrative expense		15 21 29 
Variable lease cost(1)
Cost of services
Selling, general and administrative expense		338 310 313 
Sublease incomeService revenues and other(191)(216)(210)
Total net lease cost$6,593 $6,149 $5,892 
(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

Supplemental disclosure for the statements of cash flows related to operating and finance leases were as follows:
(dollars in millions)
Years Ended December 31,202520242023
Cash Flows from Operating Activities
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$(5,280)$(5,067)$(4,929)
Operating cash flows for finance leases(116)(98)(69)
Cash Flows from Financing Activities
Financing cash flows for finance leases(944)(794)(612)
Supplemental lease cash flow disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities3,642 4,385 2,634 
Right-of-use assets obtained in exchange for new finance lease liabilities1,104 1,051 968 
Supplemental Disclosure for Balance Sheet related to Finance Leases
Supplemental disclosures for the balance sheet related to finance leases were as follows:
(dollars in millions)
At December 31,20252024
Assets
Property, plant and equipment, net$2,048 $1,692 
Liabilities
Debt maturing within one year$943 $894 
Long-term debt1,568 1,455 
Total Finance lease liabilities$2,511 $2,349 
Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate related to Leases
The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:
At December 31,20252024
Weighted-average remaining lease term (years)
Operating leases88
Finance leases43
Weighted-average discount rate
Operating leases4.3%4.1%
Finance leases5.0%4.8%
Lessee, Operating Lease, Liability, Maturity
The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2025:
(dollars in millions)
YearsOperating LeasesFinance Leases
2026$5,272 $994 
20274,983 736 
20283,580 510 
20293,087 259 
20302,512 108 
Thereafter8,735 139 
Total lease payments28,169 2,746 
Less interest4,676 235 
Present value of lease liabilities23,493 2,511 
Less current obligation4,542 943 
Long-term obligation at December 31, 2025
$18,951 $1,568 
Finance Lease, Liability, Maturity
The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2025:
(dollars in millions)
YearsOperating LeasesFinance Leases
2026$5,272 $994 
20274,983 736 
20283,580 510 
20293,087 259 
20302,512 108 
Thereafter8,735 139 
Total lease payments28,169 2,746 
Less interest4,676 235 
Present value of lease liabilities23,493 2,511 
Less current obligation4,542 943 
Long-term obligation at December 31, 2025
$18,951 $1,568