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LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.
A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred.
Years Ended December 31,
 202420232022
Operating lease cost$267 $239 $224 
Variable lease cost7 4 8 
Short-term lease cost2 13 18 
Finance lease cost
Amortization of right-of-use assets93 74 72 
Interest on lease liability15 19 21 
Total finance lease cost108 93 93 
Total lease cost$384 $349 $343 
Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$257 $237 $225 
Operating cash flows for finance leases15 19 21 
Financing cash flows for finance leases113 87 79 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$232 $339 $251 
Finance leases83 42 61 
Supplemental balance sheet information related to leases was as follows:
December 31,
20242023
Operating leases
Other assets1
$1,025 $1,004 
Accrued liabilities$199 $196 
Other liabilities927 897 
Total operating lease liabilities2
$1,126 $1,093 
Finance leases
Property, plant and equipment$396 $402 
Accumulated depreciation(211)(204)
Property, plant and equipment—net$185 $198 
Current maturities of long-term debt$69 $86 
Long-term debt85 99 
Total finance lease liabilities$154 $185 
Weighted average remaining lease term
Operating leases8 years9 years
Finance leases3 years3 years
Weighted average discount rate
Operating leases3.5 %3.0 %
Finance leases5.8 %8.5 %
1
As of December 31, 2024, Other assets excludes $16 million of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale.
2
As of December 31, 2024, Total operating lease liabilities excludes $5 million and $11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale.
As of December 31, 2024, maturities of lease liabilities were as follows:
 
Operating Leases
Finance Leases
2025$235 $75 
2026207 44 
2027177 25 
2028149 14 
2029112 7 
Thereafter422 — 
Total lease payments1,302 165 
Less: Interest160 11 
Less: Lease liabilities held for sale16 — 
Total maturities of lease liabilities$1,126 $154 
LEASES LEASES
A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, and automobiles. The majority of the Company's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.
A portion of the Company's real estate leases are generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobile leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments are incurred.
Years Ended December 31,
 202420232022
Operating lease cost$267 $239 $224 
Variable lease cost7 4 8 
Short-term lease cost2 13 18 
Finance lease cost
Amortization of right-of-use assets93 74 72 
Interest on lease liability15 19 21 
Total finance lease cost108 93 93 
Total lease cost$384 $349 $343 
Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$257 $237 $225 
Operating cash flows for finance leases15 19 21 
Financing cash flows for finance leases113 87 79 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$232 $339 $251 
Finance leases83 42 61 
Supplemental balance sheet information related to leases was as follows:
December 31,
20242023
Operating leases
Other assets1
$1,025 $1,004 
Accrued liabilities$199 $196 
Other liabilities927 897 
Total operating lease liabilities2
$1,126 $1,093 
Finance leases
Property, plant and equipment$396 $402 
Accumulated depreciation(211)(204)
Property, plant and equipment—net$185 $198 
Current maturities of long-term debt$69 $86 
Long-term debt85 99 
Total finance lease liabilities$154 $185 
Weighted average remaining lease term
Operating leases8 years9 years
Finance leases3 years3 years
Weighted average discount rate
Operating leases3.5 %3.0 %
Finance leases5.8 %8.5 %
1
As of December 31, 2024, Other assets excludes $16 million of right-of-use assets related to operating leases that are included in Assets held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale.
2
As of December 31, 2024, Total operating lease liabilities excludes $5 million and $11 million of Accrued liabilities and Other liabilities, respectively, that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale.
As of December 31, 2024, maturities of lease liabilities were as follows:
 
Operating Leases
Finance Leases
2025$235 $75 
2026207 44 
2027177 25 
2028149 14 
2029112 7 
Thereafter422 — 
Total lease payments1,302 165 
Less: Interest160 11 
Less: Lease liabilities held for sale16 — 
Total maturities of lease liabilities$1,126 $154