Leases

12 Months Ended

Dec. 31, 2024

LEASES

The Company has operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend for up to 30 years, and some leases include options to terminate within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company’s finance leases were not material as of December 31, 2024 and 2023. ROU assets arising from finance leases are included in property, plant and equipment, net and the liabilities are included in notes payable and current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.

The Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in millions):


		2024		2023			2022
Consolidated Statements of Earnings
Fixed operating lease expense(a)		$	239	$	207		$	199
Variable operating lease expense		60		67			60
Total operating lease expense		$	299	$	274		$	259

Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities		$	245	$	214		$	219
ROU assets obtained in exchange for operating lease obligations		320		182			188

Consolidated Balance Sheets				December 31, 2024			December 31, 2023
Lease Assets and Liabilities	Classification
Operating lease ROU assets	Other long-term assets			$	1,084		$	1,052

Operating lease liabilities - current	Accrued expenses and other liabilities			$	173		$	180
Operating lease liabilities - long-term	Other long-term liabilities			968			954
Total operating lease liabilities				$	1,141		$	1,134

Weighted average remaining lease term				9 years			9 years
Weighted average discount rate				4.2		%	3.4		%

(a) Includes short-term leases and sublease income, both of which were immaterial.

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2024 ($ in millions):


2025	$	212
2026	190
2027	153
2028	134
2029	120
Thereafter	584
Total operating lease payments	1,393
Less: imputed interest	(252)
Total operating lease liabilities	$	1,141

As of December 31, 2024, the Company had no additional significant operating or finance leases that had not yet commenced.