Leases

12 Months Ended

Dec. 31, 2024

Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates. Leases, predominantly operating leases, are included in Other assets and Other liabilities on the Consolidated Balance Sheets. The lease agreements do not contain significant residual value guarantees, restrictions or covenants.

Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the applicable secured borrowing rate, as most of the leases do not provide an implicit rate. The operating lease right of use asset was $320 million and $302 million and the operating lease liability was $406 million and $384 million at December 31, 2024 and 2023.

Total lease expense was $79 million, $87 million and $89 million for the years ended December 31, 2024, 2023 and 2022 which includes operating lease expense of $51 million, $58 million and $60 million, variable lease expense of $23 million, $24 million and $26 million and short-term lease expense of $5 million, $5 million and $3 million. Cash paid for amounts included in operating lease liabilities was $80 million, $60 million and $64 million for year ended December 31,

2024, 2023 and 2022. Operating lease right of use assets obtained in exchange for lease obligations was $73 million, $39 million and $118 million for the years ended December 31, 2024, 2023 and 2022.

The table below presents the maturities of lease liabilities:


	Operating
As of December 31, 2024	Leases
(In millions)

2025	$	64
2026	55
2027	53
2028	48
2029	49
Thereafter	291
Total	560
Less: discount	154
Total lease liabilities	$	406

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating the operating lease asset and liability.


As of December 31, 2024

Weighted average remaining lease term	10.5 years
Weighted average discount rate	3.9	%