Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

10. Leases

We have facilities and vehicles under various non-cancellable operating leases with third parties and an equipment finance lease with a third party. The operating leases generally have remaining terms ranging from 1 to 14 years, inclusive of renewal options that are reasonably certain of exercise. The finance lease has a remaining term of 29 years.

Supplemental information for our lease portfolio is as follows:

			As of December 31,
(MILLIONS OF DOLLARS, EXCEPT LEASE TERM AND DISCOUNT RATE AMOUNTS)			2024			2023
Supplemental Balance Sheet information:
Operating lease right-of-use assets			$	219		$	230
Finance lease right of use assets (in Other noncurrent assets)			9			9
Total lease assets			$	228		$	239
Lease liabilities:
Operating lease liabilities - current (in Other current liabilities)			$	51		$	48
Finance lease liabilities - current (in Other current liabilities)			1			1
Operating lease liabilities - noncurrent			174			188
Finance lease liabilities - noncurrent (in Other noncurrent liabilities)			7			8
Total lease liabilities			$	233		$	245
Weighted-average remaining lease term—operating leases (years)			6.57			7.26
Weighted-average remaining lease term—finance leases (years)			29.19			30.27
Weighted-average discount rate—operating leases			3.65		%	3.41		%
Weighted-average discount rate—finance leases			4.97		%	4.99		%
	Year Ended December 31,
(MILLIONS OF DOLLARS)	2024		2023			2022
Supplemental Income Statement information for operating leases:
Operating lease expense	$	59	$	56		$	51
Variable lease costs	18		20			12
Short-term lease costs not included in the measurement of lease liabilities	13		11			12
Supplemental Income Statement information for finance leases:
Amortization of right-of-use assets	1		1			—
Total lease costs	$	91	$	88		$	75
Supplemental Cash Flow information for leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	61	$	57		$	51
Financing cash flows – finance leases	1		—			—
Lease obligations obtained in exchange for right-of-use assets - operating (non-cash)	46		73			99
Lease obligations obtained in exchange for right-of-use assets – finance (non-cash)	—		9			—

Future minimum lease payments under non-cancellable lease contracts as of December 31, 2024 are as follows:

													Total		Less:
											After		Lease		Imputed
(MILLIONS OF DOLLARS)	2025		2026		2027		2028		2029		2029		Payments		Interest		Total
Operating leases	$	59	$	50	$	39	$	29	$	18	$	63	$	258	$	(33)	$	225
Finance leases	$	1	$	1	$	1	$	1	$	1	$	7	$	12	$	(4)	$	8

Leases

10. Leases

We have facilities and vehicles under various non-cancellable operating leases with third parties and an equipment finance lease with a third party. The operating leases generally have remaining terms ranging from 1 to 14 years, inclusive of renewal options that are reasonably certain of exercise. The finance lease has a remaining term of 29 years.

Supplemental information for our lease portfolio is as follows:

			As of December 31,
(MILLIONS OF DOLLARS, EXCEPT LEASE TERM AND DISCOUNT RATE AMOUNTS)			2024			2023
Supplemental Balance Sheet information:
Operating lease right-of-use assets			$	219		$	230
Finance lease right of use assets (in Other noncurrent assets)			9			9
Total lease assets			$	228		$	239
Lease liabilities:
Operating lease liabilities - current (in Other current liabilities)			$	51		$	48
Finance lease liabilities - current (in Other current liabilities)			1			1
Operating lease liabilities - noncurrent			174			188
Finance lease liabilities - noncurrent (in Other noncurrent liabilities)			7			8
Total lease liabilities			$	233		$	245
Weighted-average remaining lease term—operating leases (years)			6.57			7.26
Weighted-average remaining lease term—finance leases (years)			29.19			30.27
Weighted-average discount rate—operating leases			3.65		%	3.41		%
Weighted-average discount rate—finance leases			4.97		%	4.99		%
	Year Ended December 31,
(MILLIONS OF DOLLARS)	2024		2023			2022
Supplemental Income Statement information for operating leases:
Operating lease expense	$	59	$	56		$	51
Variable lease costs	18		20			12
Short-term lease costs not included in the measurement of lease liabilities	13		11			12
Supplemental Income Statement information for finance leases:
Amortization of right-of-use assets	1		1			—
Total lease costs	$	91	$	88		$	75
Supplemental Cash Flow information for leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	61	$	57		$	51
Financing cash flows – finance leases	1		—			—
Lease obligations obtained in exchange for right-of-use assets - operating (non-cash)	46		73			99
Lease obligations obtained in exchange for right-of-use assets – finance (non-cash)	—		9			—

Future minimum lease payments under non-cancellable lease contracts as of December 31, 2024 are as follows:

													Total		Less:
											After		Lease		Imputed
(MILLIONS OF DOLLARS)	2025		2026		2027		2028		2029		2029		Payments		Interest		Total
Operating leases	$	59	$	50	$	39	$	29	$	18	$	63	$	258	$	(33)	$	225
Finance leases	$	1	$	1	$	1	$	1	$	1	$	7	$	12	$	(4)	$	8