Leases (Notes)

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

LEASES

The company has operating and finance leases for real estate, transportation, certain machinery and equipment, and information technology assets. The company’s leases have remaining lease terms of approximately 1 to 37 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the company will exercise that option. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability.

Certain of the company's leases include residual value guarantees. These residual value guarantees are based on a percentage of the lessor's asset acquisition price and the amount of such guarantee generally declines over the course of the lease term. The portion of residual value guarantees that are probable of payment are included in the related lease liability. At December 31, 2025, the company has future maximum payments for residual value guarantees in operating leases of $183 million with final expirations through 2035. The company's lease agreements do not contain any material restrictive covenants.

The components of lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:

	For the Year Ended December 31,
(In millions)	2025		2024		2023
Operating lease cost	$	161	$	176	$	169
Finance lease cost
Amortization of right-of-use assets	—		1		1
Total finance lease cost	$	—	$	1	$	1
Short-term lease cost	37		27		23
Variable lease cost	7		8		11
Total lease cost	$	205	$	212	$	204

Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:

	For the Year Ended December 31,
(In millions)	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	166	$	188	$	169
Financing cash outflows from finance leases	$	—	$	1	$	1

New leases entered into during the years ended December 31, 2025 and 2024 were not material, on an individual basis.

Supplemental balance sheet information related to leases is as follows:

(In millions)	December 31, 2025		December 31, 2024
Operating Leases
Operating lease right-of-use assets 1	$	411	$	414
Current operating lease liabilities 2	122		134
Noncurrent operating lease liabilities 3	293		342
Total operating lease liabilities	$	415	$	476
Finance Leases
Property, plant, and equipment, gross	$	14	$	14
Accumulated depreciation	(14)		(14)
Property, plant, and equipment, net	$	—	$	—
Short-term borrowings and finance lease obligations	—		—
Long-term debt	—		—
Total finance lease liabilities	$	—	$	—

1.Included in other assets in the Consolidated Balance Sheets.

2. Included in accrued and other current liabilities in the Consolidated Balance Sheets.

3. Included in other noncurrent obligations in the Consolidated Balance Sheets.

The company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.

Lease Term and Discount Rate	December 31, 2025		December 31, 2024
Weighted-average remaining lease term (years)
Operating leases	6.20		6.44
Finance leases	0		0.38
Weighted average discount rate
Operating leases	3.85	%	3.32	%
Finance leases	—	%	3.29	%

Maturities of lease liabilities are as follows:

Maturity of Lease Liabilities at December 31, 2025	Operating Leases
(In millions)
2026	$	136
2027	95
2028	71
2029	51
2030	33
2031 and thereafter	87
Total lease payments	$	473
Less: Interest	58
Present value of lease liabilities	$	415

Leases

LEASES

The company has operating and finance leases for real estate, transportation, certain machinery and equipment, and information technology assets. The company’s leases have remaining lease terms of approximately 1 to 37 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the company will exercise that option. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability.

Certain of the company's leases include residual value guarantees. These residual value guarantees are based on a percentage of the lessor's asset acquisition price and the amount of such guarantee generally declines over the course of the lease term. The portion of residual value guarantees that are probable of payment are included in the related lease liability. At December 31, 2025, the company has future maximum payments for residual value guarantees in operating leases of $183 million with final expirations through 2035. The company's lease agreements do not contain any material restrictive covenants.

The components of lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:

	For the Year Ended December 31,
(In millions)	2025		2024		2023
Operating lease cost	$	161	$	176	$	169
Finance lease cost
Amortization of right-of-use assets	—		1		1
Total finance lease cost	$	—	$	1	$	1
Short-term lease cost	37		27		23
Variable lease cost	7		8		11
Total lease cost	$	205	$	212	$	204

Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:

	For the Year Ended December 31,
(In millions)	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	166	$	188	$	169
Financing cash outflows from finance leases	$	—	$	1	$	1

New leases entered into during the years ended December 31, 2025 and 2024 were not material, on an individual basis.

Supplemental balance sheet information related to leases is as follows:

(In millions)	December 31, 2025		December 31, 2024
Operating Leases
Operating lease right-of-use assets 1	$	411	$	414
Current operating lease liabilities 2	122		134
Noncurrent operating lease liabilities 3	293		342
Total operating lease liabilities	$	415	$	476
Finance Leases
Property, plant, and equipment, gross	$	14	$	14
Accumulated depreciation	(14)		(14)
Property, plant, and equipment, net	$	—	$	—
Short-term borrowings and finance lease obligations	—		—
Long-term debt	—		—
Total finance lease liabilities	$	—	$	—

1.Included in other assets in the Consolidated Balance Sheets.

2. Included in accrued and other current liabilities in the Consolidated Balance Sheets.

3. Included in other noncurrent obligations in the Consolidated Balance Sheets.

The company utilizes the incremental borrowing rate in determining the present value of lease payments unless the implicit rate is readily determinable.

Lease Term and Discount Rate	December 31, 2025		December 31, 2024
Weighted-average remaining lease term (years)
Operating leases	6.20		6.44
Finance leases	0		0.38
Weighted average discount rate
Operating leases	3.85	%	3.32	%
Finance leases	—	%	3.29	%

Maturities of lease liabilities are as follows:

Maturity of Lease Liabilities at December 31, 2025	Operating Leases
(In millions)
2026	$	136
2027	95
2028	71
2029	51
2030	33
2031 and thereafter	87
Total lease payments	$	473
Less: Interest	58
Present value of lease liabilities	$	415