Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Lease, cost

Lease expense consisted of the following:

	Years Ended December 31,
	2024		2023	2022
	(Dollars in millions)
Operating and short-term lease cost	$	375	384	348
Finance lease cost:
Amortization of right-of-use assets	18		23	25
Interest on lease liability	10		10	11
Total finance lease cost	28		33	36
Total lease cost	$	403	417	384

Supplemental consolidated cash flow statement information related to leases is included below:

	Years Ended December 31,
	2024		2023
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	365	384
Operating cash flows for finance leases	10		10
Financing cash flows for finance leases	16		23
Supplemental lease cash flow disclosures:
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	124	104
Right-of-use assets obtained in exchange for new finance lease liabilities	2		8

Assets and liabilities

Supplemental consolidated balance sheet information and other information related to leases is included below:

		As of December 31,
Leases (Dollars in millions)	Classification on the Balance Sheet	2024			2023
Assets
Operating lease assets	Other, net(1)	$	918		1,056
Finance lease assets	Property, plant and equipment, net of accumulated depreciation	175			191
Total leased assets		$	1,093		1,247
Liabilities
Current
Operating	Current operating lease liabilities(2)	$	266		288
Finance	Current maturities of long-term debt	16			14
Noncurrent
Operating	Operating lease liabilities(3)	719			845
Finance	Long-term debt	174			190
Total lease liabilities		$	1,175		1,337
Weighted-average remaining lease term (years)
Operating leases		6.6			7.1
Finance leases		10.1			10.0
Weighted-average discount rate
Operating leases		7.56		%	6.63	%
Finance leases		4.69		%	4.97	%

_______________________________________________________________________________

(1) Includes affiliate operating lease assets of $234 million and $311 million as of December 31, 2024 and 2023, respectively.

(2) Includes current portion of affiliate operating lease liabilities of $113 million and $129 million as of December 31, 2024 and 2023, respectively.

(3) Includes noncurrent portion of affiliate operating lease liabilities of $128 million and $201 million as of December 31, 2024 and 2023, respectively.

Lessee, operating lease, liability, maturity

As of December 31, 2024, maturities of lease liabilities were as follows:

	Operating Leases		Finance Leases
	(Dollars in millions)
2025	$	326	25
2026	233		25
2027	156		26
2028	114		26
2029	81		24
Thereafter	378		111
Total lease payments	1,288		237
Less: interest	(303)		(47)
Total	985		190
Less: current portion	(266)		(16)
Long-term portion	$	719	174

Finance lease, liability, maturity

As of December 31, 2024, maturities of lease liabilities were as follows:

	Operating Leases		Finance Leases
	(Dollars in millions)
2025	$	326	25
2026	233		25
2027	156		26
2028	114		26
2029	81		24
Thereafter	378		111
Total lease payments	1,288		237
Less: interest	(303)		(47)
Total	985		190
Less: current portion	(266)		(16)
Long-term portion	$	719	174