v3.25.2
Leases
 6 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The Company leases real estate, most significantly warehouses for use in operations, as well as equipment for use within owned and leased warehouses. The Company also leases vehicles, trailers, and other equipment. The Company has not pledged any assets as collateral related to the Company’s existing leases as of June 30, 2025 and December 31, 2024.
Right-of-use asset balances are as follows:
(in millions)June 30, 2025December 31, 2024
Finance lease right-of-use assets$1,638 $1,706 
Less: accumulated amortization(495)(452)
Finance lease right-of-use assets, net$1,143 $1,254 
Operating lease right-of-use assets$849 $828 
Less: accumulated amortization(224)(201)
Operating lease right-of-use assets, net$625 $627 
Lease liabilities are presented in the following line items in the condensed consolidated balance sheets:
June 30, 2025December 31, 2024
(in millions)Finance LeasesOperating LeasesFinance LeasesOperating Leases
Accounts payable and accrued liabilities$79$53$165$50
Long-term finance lease obligations1,239—1,249—
Long-term operating lease obligations—605—605
Total lease obligations$1,318$658$1,414$655
Future minimum lease payments for each of the next five years and thereafter as of June 30, 2025 are as follows (in millions):
Years Ending December 31:Finance LeasesOperating Leases
2025 (six months remaining)$83$48
202616493
202715891
202814981
202914872
2030 and thereafter1,542716
Total lease payments2,2441,101
Less imputed interest(926)(443)
Total lease obligations$1,318$658
Supplemental condensed consolidated balance sheets information related to leases is as follows:
June 30,December 31,
20252024
Weighted average remaining lease term (in years):
Finance15.214.5
Operating16.315.9
Weighted average discount rate:
Finance6.8 %6.8 %
Operating6.5 %6.5 %
The components of lease expense are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Finance lease cost:
Amortization of ROU assets$26 $24 $52 $48 
Interest on lease liabilities22 23 46 46 
Operating lease cost26 29 52 58 
Variable & short-term lease cost9 10 20 19 
Sublease income(4)(7)(8)(11)
Total lease cost$79 $79 $162 $160 
Supplemental cash flow information related to leases is as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Cash paid for amounts included in the measurement of lease liability
Operating cash flows from finance leases$22 $24 $46 $46 
Finance cash flows from finance leases$107 $18 $128 $32 
Operating cash flows from operating leases$24 $27 $48 $50 
ROU assets obtained in exchange for lease obligations (excluding the effect of acquisitions)
Finance leases$3 $22 $9 $37 
Operating leases$1 $8 $6 $12 
Leases Leases
The Company leases real estate, most significantly warehouses for use in operations, as well as equipment for use within owned and leased warehouses. The Company also leases vehicles, trailers, and other equipment. The Company has not pledged any assets as collateral related to the Company’s existing leases as of June 30, 2025 and December 31, 2024.
Right-of-use asset balances are as follows:
(in millions)June 30, 2025December 31, 2024
Finance lease right-of-use assets$1,638 $1,706 
Less: accumulated amortization(495)(452)
Finance lease right-of-use assets, net$1,143 $1,254 
Operating lease right-of-use assets$849 $828 
Less: accumulated amortization(224)(201)
Operating lease right-of-use assets, net$625 $627 
Lease liabilities are presented in the following line items in the condensed consolidated balance sheets:
June 30, 2025December 31, 2024
(in millions)Finance LeasesOperating LeasesFinance LeasesOperating Leases
Accounts payable and accrued liabilities$79$53$165$50
Long-term finance lease obligations1,239—1,249—
Long-term operating lease obligations—605—605
Total lease obligations$1,318$658$1,414$655
Future minimum lease payments for each of the next five years and thereafter as of June 30, 2025 are as follows (in millions):
Years Ending December 31:Finance LeasesOperating Leases
2025 (six months remaining)$83$48
202616493
202715891
202814981
202914872
2030 and thereafter1,542716
Total lease payments2,2441,101
Less imputed interest(926)(443)
Total lease obligations$1,318$658
Supplemental condensed consolidated balance sheets information related to leases is as follows:
June 30,December 31,
20252024
Weighted average remaining lease term (in years):
Finance15.214.5
Operating16.315.9
Weighted average discount rate:
Finance6.8 %6.8 %
Operating6.5 %6.5 %
The components of lease expense are as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Finance lease cost:
Amortization of ROU assets$26 $24 $52 $48 
Interest on lease liabilities22 23 46 46 
Operating lease cost26 29 52 58 
Variable & short-term lease cost9 10 20 19 
Sublease income(4)(7)(8)(11)
Total lease cost$79 $79 $162 $160 
Supplemental cash flow information related to leases is as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Cash paid for amounts included in the measurement of lease liability
Operating cash flows from finance leases$22 $24 $46 $46 
Finance cash flows from finance leases$107 $18 $128 $32 
Operating cash flows from operating leases$24 $27 $48 $50 
ROU assets obtained in exchange for lease obligations (excluding the effect of acquisitions)
Finance leases$3 $22 $9 $37 
Operating leases$1 $8 $6 $12