Leases

12 Months Ended

Dec. 31, 2024

The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Company’s leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options.

Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at the commencement date of the lease. On November 15, 2024, the Company recorded approximately $76 million, of ROU assets and lease liabilities from the McGriff acquisition.

In 2024 and 2023, the Company determined that a total of $15 million and $27 million, respectively, of the ROU assets were impaired and recorded a charge to the consolidated statements of income with an offsetting reduction to the ROU assets.

The following table provides additional information about the Company’s property leases:


For the Years Ended December 31, (In millions, except weighted average data)	2024			2023
Lease Cost:
Operating lease cost (a)	$	331		$	324
Short-term lease cost	6			5
Variable lease cost	116			122
Sub-lease income	(15)			(11)
Net lease cost	$	438		$	440
Other information:
Operating cash outflows from operating leases	$	376		$	379
Right of use assets obtained in exchange for new operating lease liabilities	$	279		$	224
Weighted average remaining lease term – real estate	7.57 years			7.98 years

Weighted average discount rate – real estate leases	3.73		%	3.35		%

(a)Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases at December 31, 2024 are as follows:


(In millions)	Real Estate Leases
2025	$	382
2026	355
2027	313
2028	239
2029	197
Subsequent years	700
Total future lease payments	2,186
Less: imputed interest	(271)
Total	$	1,915
Current lease liabilities	$	325
Long-term lease liabilities	1,590
Total lease liabilities	$	1,915

Note: The above table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets.

At December 31, 2024, the Company did not have any additional operating real estate leases that had not yet commenced.