LEASES

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

(In millions)	2024		2023		2022
Operating leases
Lease income related to ChoiceLease	$	1,482	$	1,483	$	1,490
Lease income related to commercial rental (1)	$	928	$	1,123	$	1,286
Sales-type leases
Interest income related to net investment in leases	$	75	$	56	$	45
Variable lease income excluding commercial rental (1)	$	373	$	308	$	323

________________________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.

The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:

	December 31,
(In millions)	2024		2023
Net investment in the lease - lease payment receivable	$	818	$	723
Net investment in the lease - unguaranteed residual value in assets	49		43
	867		766
Estimated loss allowance	(5)		(4)
Total	$	862	$	762

Maturities of sales-type lease receivables as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	235
2026	221
2027	181
2028	162
2029	114
Thereafter	141
Total undiscounted cash flows	1,054
Present value of lease payments (recognized as lease receivables)	(818)
Difference between undiscounted cash flows and discounted cash flows	$	236

Operating lease payments expected to be received as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	1,289
2026	1,019
2027	775
2028	581
2029	408
Thereafter	323
Total undiscounted cash flows	$	4,395

Leases as Lessee

The components of lease expense were as follows:

(In millions)	2024		2023		2022
Finance lease cost
Amortization of right-of-use-assets	$	20	$	15	$	13
Interest on lease liabilities	3		2		2
Operating lease cost	374		271		199
Short-term lease and other	8		10		10
Variable lease cost	54		50		26
Sublease income	(29)		(41)		(39)
Total lease cost	$	430	$	307	$	211

Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:

	December 31,
	2024				2023
(In millions)	Operating		Finance		Operating		Finance
Noncurrent assets	$	1,055	$	75	$	1,016	$	48
Current liabilities	$	302	$	22	$	234	$	16
Noncurrent liabilities	$	804	$	54	$	800	$	33

	December 31,
	2024		2023
Weighted-average remaining lease term
Operating	5 years		5 years
Finance	4 years		4 years
Weighted-average discount rate
Operating	5.4	%	5.1	%
Finance	5.1	%	5.0	%

Maturities of operating and finance lease liabilities were as follows (in millions):

	Operating Leases		Finance Leases
Years ending December 31,					Total
2025	$	352	$	25	$	376
2026	289		21		310
2027	226		16		242
2028	154		12		166
2029	85		7		91
Thereafter	149		3		152
Total lease payments	1,255		84		1,339
Less: Imputed Interest	(149)		(8)		(157)
Present value of lease liabilities	$	1,106	$	76	$	1,182

________________________ 

Note: Amounts may not be additive due to rounding.

As of December 31, 2024, we have entered into $22 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2025 with lease terms of generally 4 to 10 years.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

(In millions)	2024		2023		2022
Operating leases
Lease income related to ChoiceLease	$	1,482	$	1,483	$	1,490
Lease income related to commercial rental (1)	$	928	$	1,123	$	1,286
Sales-type leases
Interest income related to net investment in leases	$	75	$	56	$	45
Variable lease income excluding commercial rental (1)	$	373	$	308	$	323

________________________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.

The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:

	December 31,
(In millions)	2024		2023
Net investment in the lease - lease payment receivable	$	818	$	723
Net investment in the lease - unguaranteed residual value in assets	49		43
	867		766
Estimated loss allowance	(5)		(4)
Total	$	862	$	762

Maturities of sales-type lease receivables as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	235
2026	221
2027	181
2028	162
2029	114
Thereafter	141
Total undiscounted cash flows	1,054
Present value of lease payments (recognized as lease receivables)	(818)
Difference between undiscounted cash flows and discounted cash flows	$	236

Operating lease payments expected to be received as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	1,289
2026	1,019
2027	775
2028	581
2029	408
Thereafter	323
Total undiscounted cash flows	$	4,395

Leases as Lessee

The components of lease expense were as follows:

(In millions)	2024		2023		2022
Finance lease cost
Amortization of right-of-use-assets	$	20	$	15	$	13
Interest on lease liabilities	3		2		2
Operating lease cost	374		271		199
Short-term lease and other	8		10		10
Variable lease cost	54		50		26
Sublease income	(29)		(41)		(39)
Total lease cost	$	430	$	307	$	211

Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:

	December 31,
	2024				2023
(In millions)	Operating		Finance		Operating		Finance
Noncurrent assets	$	1,055	$	75	$	1,016	$	48
Current liabilities	$	302	$	22	$	234	$	16
Noncurrent liabilities	$	804	$	54	$	800	$	33

	December 31,
	2024		2023
Weighted-average remaining lease term
Operating	5 years		5 years
Finance	4 years		4 years
Weighted-average discount rate
Operating	5.4	%	5.1	%
Finance	5.1	%	5.0	%

Maturities of operating and finance lease liabilities were as follows (in millions):

	Operating Leases		Finance Leases
Years ending December 31,					Total
2025	$	352	$	25	$	376
2026	289		21		310
2027	226		16		242
2028	154		12		166
2029	85		7		91
Thereafter	149		3		152
Total lease payments	1,255		84		1,339
Less: Imputed Interest	(149)		(8)		(157)
Present value of lease liabilities	$	1,106	$	76	$	1,182

________________________ 

Note: Amounts may not be additive due to rounding.

As of December 31, 2024, we have entered into $22 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2025 with lease terms of generally 4 to 10 years.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

(In millions)	2024		2023		2022
Operating leases
Lease income related to ChoiceLease	$	1,482	$	1,483	$	1,490
Lease income related to commercial rental (1)	$	928	$	1,123	$	1,286
Sales-type leases
Interest income related to net investment in leases	$	75	$	56	$	45
Variable lease income excluding commercial rental (1)	$	373	$	308	$	323

________________________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.

The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:

	December 31,
(In millions)	2024		2023
Net investment in the lease - lease payment receivable	$	818	$	723
Net investment in the lease - unguaranteed residual value in assets	49		43
	867		766
Estimated loss allowance	(5)		(4)
Total	$	862	$	762

Maturities of sales-type lease receivables as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	235
2026	221
2027	181
2028	162
2029	114
Thereafter	141
Total undiscounted cash flows	1,054
Present value of lease payments (recognized as lease receivables)	(818)
Difference between undiscounted cash flows and discounted cash flows	$	236

Operating lease payments expected to be received as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	1,289
2026	1,019
2027	775
2028	581
2029	408
Thereafter	323
Total undiscounted cash flows	$	4,395

Leases as Lessee

The components of lease expense were as follows:

(In millions)	2024		2023		2022
Finance lease cost
Amortization of right-of-use-assets	$	20	$	15	$	13
Interest on lease liabilities	3		2		2
Operating lease cost	374		271		199
Short-term lease and other	8		10		10
Variable lease cost	54		50		26
Sublease income	(29)		(41)		(39)
Total lease cost	$	430	$	307	$	211

Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:

	December 31,
	2024				2023
(In millions)	Operating		Finance		Operating		Finance
Noncurrent assets	$	1,055	$	75	$	1,016	$	48
Current liabilities	$	302	$	22	$	234	$	16
Noncurrent liabilities	$	804	$	54	$	800	$	33

	December 31,
	2024		2023
Weighted-average remaining lease term
Operating	5 years		5 years
Finance	4 years		4 years
Weighted-average discount rate
Operating	5.4	%	5.1	%
Finance	5.1	%	5.0	%

Maturities of operating and finance lease liabilities were as follows (in millions):

	Operating Leases		Finance Leases
Years ending December 31,					Total
2025	$	352	$	25	$	376
2026	289		21		310
2027	226		16		242
2028	154		12		166
2029	85		7		91
Thereafter	149		3		152
Total lease payments	1,255		84		1,339
Less: Imputed Interest	(149)		(8)		(157)
Present value of lease liabilities	$	1,106	$	76	$	1,182

________________________ 

Note: Amounts may not be additive due to rounding.

As of December 31, 2024, we have entered into $22 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2025 with lease terms of generally 4 to 10 years.

LEASES

LEASES

Leases as Lessor

The components of revenue from leases were as follows:

(In millions)	2024		2023		2022
Operating leases
Lease income related to ChoiceLease	$	1,482	$	1,483	$	1,490
Lease income related to commercial rental (1)	$	928	$	1,123	$	1,286
Sales-type leases
Interest income related to net investment in leases	$	75	$	56	$	45
Variable lease income excluding commercial rental (1)	$	373	$	308	$	323

________________________ 

(1)Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates.

The components of the net investment in sales-type leases, which are included in "Receivables, net" and "Sales-type leases and other assets" in the Consolidated Balance Sheets, were as follows:

	December 31,
(In millions)	2024		2023
Net investment in the lease - lease payment receivable	$	818	$	723
Net investment in the lease - unguaranteed residual value in assets	49		43
	867		766
Estimated loss allowance	(5)		(4)
Total	$	862	$	762

Maturities of sales-type lease receivables as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	235
2026	221
2027	181
2028	162
2029	114
Thereafter	141
Total undiscounted cash flows	1,054
Present value of lease payments (recognized as lease receivables)	(818)
Difference between undiscounted cash flows and discounted cash flows	$	236

Operating lease payments expected to be received as of December 31, 2024, were as follows:

Years ending December 31,	(In millions)
2025	$	1,289
2026	1,019
2027	775
2028	581
2029	408
Thereafter	323
Total undiscounted cash flows	$	4,395

Leases as Lessee

The components of lease expense were as follows:

(In millions)	2024		2023		2022
Finance lease cost
Amortization of right-of-use-assets	$	20	$	15	$	13
Interest on lease liabilities	3		2		2
Operating lease cost	374		271		199
Short-term lease and other	8		10		10
Variable lease cost	54		50		26
Sublease income	(29)		(41)		(39)
Total lease cost	$	430	$	307	$	211

Operating and finance lease ROU assets and lease liabilities included in the Consolidated Balance Sheets were as follows:

	December 31,
	2024				2023
(In millions)	Operating		Finance		Operating		Finance
Noncurrent assets	$	1,055	$	75	$	1,016	$	48
Current liabilities	$	302	$	22	$	234	$	16
Noncurrent liabilities	$	804	$	54	$	800	$	33

	December 31,
	2024		2023
Weighted-average remaining lease term
Operating	5 years		5 years
Finance	4 years		4 years
Weighted-average discount rate
Operating	5.4	%	5.1	%
Finance	5.1	%	5.0	%

Maturities of operating and finance lease liabilities were as follows (in millions):

	Operating Leases		Finance Leases
Years ending December 31,					Total
2025	$	352	$	25	$	376
2026	289		21		310
2027	226		16		242
2028	154		12		166
2029	85		7		91
Thereafter	149		3		152
Total lease payments	1,255		84		1,339
Less: Imputed Interest	(149)		(8)		(157)
Present value of lease liabilities	$	1,106	$	76	$	1,182

________________________ 

Note: Amounts may not be additive due to rounding.

As of December 31, 2024, we have entered into $22 million of additional facility operating leases that have not yet commenced. The operating leases will commence in 2025 with lease terms of generally 4 to 10 years.