Leases

3 Months Ended

Mar. 31, 2025

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 commencement date of the lease.

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


	Three Months Ended March 31,
(In millions, except weighted average data)		2025			2024
Lease Cost:
Operating lease cost (a)		$	86		$	82
Short-term lease cost		2			1
Variable lease cost		32			26
Sublease income		(4)			(3)
Net lease cost		$	116		$	106
Other information:
Operating cash outflows from operating leases		$	98		$	93
Right of use assets obtained in exchange for new operating lease liabilities		$	30		$	36
Weighted average remaining lease term – real estate		7.4 years			7.8 years

Weighted average discount rate – real estate leases		3.71		%	3.44		%

(a)Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases at March 31, 2025 are as follows:


(In millions)	Real Estate Leases
2025 (excludes payments through March 31, 2025)	$	291
2026	367
2027	324
2028	246
2029	205
2030	169
Subsequent years	550
Total future lease payments	2,152
Less: Imputed interest	(262)
Total	$	1,890
Current lease liabilities	$	327
Long-term lease liabilities	1,563
Total lease liabilities	$	1,890

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.