v3.26.1
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.
A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred.
Years Ended December 31,
 202520242023
Operating lease cost$235 $232 $217 
Variable lease cost5 7 4 
Short-term lease cost7 2 13 
Finance lease cost
Amortization of right-of-use assets51 74 54 
Interest on lease liability3 5 3 
Total finance lease cost54 79 57 
Total lease cost$301 $320 $291 
Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$236 $227 $217 
Operating cash flows for finance leases4 5 3 
Financing cash flows for finance leases52 73 54 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$241 $211 $295 
Finance leases20 79 40 
Supplemental balance sheet information related to leases was as follows:
December 31,
20252024
Operating leases
Other assets1
$876 $936 
Accrued liabilities$174 $176 
Other liabilities809 863 
Total operating lease liabilities2
$983 $1,039 
Finance leases
Property, plant and equipment$171 $196 
Accumulated depreciation(110)(107)
Property, plant and equipment—net$61 $89 
Current maturities of long-term debt$37 $47 
Long-term debt27 46 
Total finance lease liabilities$64 $93 
Weighted average remaining lease term
Operating leases8 years9 years
Finance leases2 years2 years
Weighted average discount rate
Operating leases4.3 %3.4 %
Finance leases4.5 %4.2 %
1
As of December 31, 2025 2024, Other assets excludes $88 million and $16 million, respectively, of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations.
2
As of December 31, 2025, Total operating lease liabilities excludes $13 million and $81 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. As of December 31, 2024, Total operating lease liabilities excludes $5 million and $11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations.
As of December 31, 2025, maturities of lease liabilities were as follows:
 
Operating Leases
Finance Leases
2026$224 $39 
2027202 20 
2028178 6 
2029142 2 
2030106 — 
Thereafter411 — 
Total lease payments1,263 67 
Less: Interest186 3 
Less: Lease liabilities held for sale94 — 
Total maturities of lease liabilities$983 $64 
LEASES LEASES
A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.
A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred.
Years Ended December 31,
 202520242023
Operating lease cost$235 $232 $217 
Variable lease cost5 7 4 
Short-term lease cost7 2 13 
Finance lease cost
Amortization of right-of-use assets51 74 54 
Interest on lease liability3 5 3 
Total finance lease cost54 79 57 
Total lease cost$301 $320 $291 
Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$236 $227 $217 
Operating cash flows for finance leases4 5 3 
Financing cash flows for finance leases52 73 54 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$241 $211 $295 
Finance leases20 79 40 
Supplemental balance sheet information related to leases was as follows:
December 31,
20252024
Operating leases
Other assets1
$876 $936 
Accrued liabilities$174 $176 
Other liabilities809 863 
Total operating lease liabilities2
$983 $1,039 
Finance leases
Property, plant and equipment$171 $196 
Accumulated depreciation(110)(107)
Property, plant and equipment—net$61 $89 
Current maturities of long-term debt$37 $47 
Long-term debt27 46 
Total finance lease liabilities$64 $93 
Weighted average remaining lease term
Operating leases8 years9 years
Finance leases2 years2 years
Weighted average discount rate
Operating leases4.3 %3.4 %
Finance leases4.5 %4.2 %
1
As of December 31, 2025 2024, Other assets excludes $88 million and $16 million, respectively, of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations.
2
As of December 31, 2025, Total operating lease liabilities excludes $13 million and $81 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. As of December 31, 2024, Total operating lease liabilities excludes $5 million and $11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations.
As of December 31, 2025, maturities of lease liabilities were as follows:
 
Operating Leases
Finance Leases
2026$224 $39 
2027202 20 
2028178 6 
2029142 2 
2030106 — 
Thereafter411 — 
Total lease payments1,263 67 
Less: Interest186 3 
Less: Lease liabilities held for sale94 — 
Total maturities of lease liabilities$983 $64