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 $1 million and $5 million of ROU assets were impaired for both the three and six months ended June 30, 2025 and 2024, respectively, and recorded a charge to the consolidated statements of income with an offsetting reduction to ROU assets.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except weighted average data)	2025		2024		2025			2024
Lease Cost:
Operating lease cost (a)	$	88	$	81	$	174		$	163
Short-term lease cost	1		2		3			3
Variable lease cost	34		28		66			54
Sublease income	(6)		(5)		(10)			(8)
Net lease cost	$	117	$	106	$	233		$	212
Other information:
Operating cash outflows from operating leases					$	199		$	183
ROU assets obtained in exchange for new operating lease liabilities					$	42		$	85
Weighted average remaining lease term – real estate					7.4 years			7.8 years

Weighted average discount rate – real estate leases					3.75		%	3.58		%


(In millions)	Real Estate Leases
2025 (excludes payments through June 30, 2025)	$	200
2026	379
2027	335
2028	254
2029	212
2030	179
Subsequent years	585
Total future lease payments	2,144
Less: Imputed interest	(263)
Total	$	1,881
Current lease liabilities	$	335
Long-term lease liabilities	1,546
Total lease liabilities	$	1,881

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 June 30, 2025, the Company had additional operating real estate leases that had not yet commenced of $53 million. These operating leases will commence over the next 12 months.