Annual report pursuant to Section 13 and 15(d)

LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Notes)

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LEASES FOOTNOTE DISCLOSURE LEASES FOOTNOTE DISCLOSURE (Notes)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases of Lessee Disclosure
NOTE 8. LEASES
Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of land, office, distribution, warehousing and manufacturing facilities. These leases typically range in term from 2 to 50 years and may contain renewal options for periods up to 10 years at our discretion. Our equipment lease portfolio consists primarily of vehicles (including service vehicles), fork trucks and IT equipment. These leases typically range in term from two to three years and may contain renewal options. Our leases generally do not contain variable lease payments other than (1) certain foreign real estate leases which have payments indexed to inflation and (2) certain real estate executory costs (such as taxes, insurance and maintenance), which are paid based on actual expenses incurred by the lessor during the year. Our leases generally do not include residual value guarantees other than our service vehicle fleet, which has a residual guarantee based on a percentage of the original cost declining over the lease term.
The components of our lease cost were as follows:
Years ended December 31,
In millions 2024 2023 2022
Operating lease cost $ 187  $ 165  $ 160 
Finance lease cost
Amortization of right-of-use asset 26  20  19 
Interest expense 7  4  4 
Short-term lease cost 41  24  23 
Variable lease cost 17  14  12 
Total lease cost $ 278  $ 227  $ 218 
Supplemental balance sheet information related to leases:
December 31,
In millions 2024 2023 Balance Sheet Location
Assets
Operating lease assets $ 532  $ 501  Other assets
Finance lease assets (1)
121  115  Property, plant and equipment, net
Total lease assets $ 653  $ 616 
Liabilities
Current
Operating lease liabilities $ 130  $ 138  Other accrued expenses
Finance lease liabilities 20  17  Current maturities of long-term debt
Long-term
Operating lease liabilities 409  374  Other liabilities
Finance lease liabilities 105  94  Long-term debt
Total lease liabilities $ 664  $ 623 
(1) Finance lease assets were recorded net of accumulated amortization of $80 million and $77 million at December 31, 2024 and 2023.
Supplemental cash flow and other information related to leases:
Years ended December 31,
In millions 2024 2023 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases $ 176  $ 148  $ 151 
Operating cash flows from finance leases 7  4  4 
Financing cash flows from finance leases 23  35  16 
Right-of-use assets obtained in exchange for lease obligations
Operating leases $ 268  $ 153  $ 148 
Finance leases 43  12  29 
Additional information related to leases:
December 31,
2024 2023
Weighted-average remaining lease term (in years)
Operating leases 5.9 5.2
Finance leases 7.8 8.6
Weighted-average discount rate
Operating leases 4.6  % 4.2  %
Finance leases 6.0  % 5.0  %
Following is a summary of the future minimum lease payments related to finance and operating leases with terms of more than one year at December 31, 2024, together with the net present value of the minimum payments:
In millions Finance Leases Operating Leases
2025 $ 26  $ 150 
2026 23  123 
2027 20  98 
2028 17  69 
2029 14  45 
After 2029 58  137 
Total minimum lease payments 158  622 
Interest (33) (83)
Present value of net minimum lease payments $ 125  $ 539