Leases

9 Months Ended

Sep. 30, 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 Company determined that $3 million and $8 million of ROU assets were impaired for the three and nine months ended September 30, 2025, respectively, and $7 million and $9 million for the three and nine months ended September 30, 2024, respectively, and recorded a charge to the consolidated statements of income with an offsetting reduction to ROU assets.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except weighted average data)	2025		2024		2025			2024
Lease Cost:
Operating lease cost (a)	$	88	$	84	$	262		$	247
Short-term lease cost	1		1		4			4
Variable lease cost	35		31		101			85
Sublease income	(6)		(2)		(16)			(10)
Net lease cost	$	118	$	114	$	351		$	326
Other information:
Operating cash outflows from operating leases					$	300		$	278
ROU assets obtained in exchange for new operating lease liabilities					$	94		$	135
Weighted average remaining lease term – real estate					7.3 years			7.8 years

Weighted average discount rate – real estate leases					3.79		%	3.64		%

(a)Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases at September 30, 2025 are as follows:


(In millions)	Real Estate Leases
2025 (excludes payments through September 30, 2025)	$	100
2026	383
2027	342
2028	263
2029	219
2030	185
Subsequent years	617
Total future lease payments	2,109
Less: Imputed interest	(263)
Total	$	1,846
Current lease liabilities	$	332
Long-term lease liabilities	1,514
Total lease liabilities	$	1,846

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 September 30, 2025, the Company had additional operating real estate leases that had not yet commenced of $13 million. These operating leases will commence over the next 12 months.