| Leases We lease warehouse and distribution facilities, office space, manufacturing facilities, equipment and vehicles, primarily through operating leases. Leases recorded on our Consolidated Balance Sheet have remaining terms primarily from 1 to 12 years. Our fleet leases generally include residual value guarantees that are assessed at lease inception in determining ROU assets and corresponding liabilities. No other significant restrictions or covenants are included in our leases. The components of lease costs were as follows: | | | | | | | | | | | | | | | | | | | | | | | | (Millions) | | 2025 | | 2024 | | 2023 | | | Operating lease cost(1) | | $ | 115 | | | $ | 101 | | | $ | 86 | | | | | Finance lease - amortization of ROU assets | | 29 | | | 22 | | | 16 | | | | | Finance lease - interest on lease liabilities | | 4 | | | 2 | | | — | | | | | Short-term lease cost | | 65 | | | 66 | | | 64 | | | | | Variable lease cost | | 261 | | | 217 | | | 207 | | | | | | | | | | | | | | Total | | $ | 474 | | | $ | 408 | | | $ | 373 | | | |
__________________________________________ (1)2024 excludes costs associated with the cost savings initiatives described in Note 8. The following table summarizes the lease amounts recorded in the Consolidated Balance Sheets: | | | | | | | | | | | | | | | | | | | | | | | | Operating Leases | | (Millions) | | Balance Sheet Classification | | 2025 | | 2024 | | ROU assets, net | | Other assets | | $ | 326 | | | $ | 333 | | | Lease liabilities (current) | | Accrued liabilities | | $ | 96 | | | $ | 90 | | | Lease liabilities (noncurrent) | | Other liabilities | | $ | 259 | | | $ | 268 | | | | | | | | | | | Financing Leases | | (Millions) | | Balance Sheet Classification | | 2025 | | 2024 | | ROU assets, net | | Plant assets, net of depreciation | | $ | 66 | | | $ | 72 | | | Lease liabilities (current) | | Short-term borrowings | | $ | 32 | | | $ | 25 | | | Lease liabilities (noncurrent) | | Long-term debt | | $ | 38 | | | $ | 46 | |
Weighted-average lease terms and discount rates were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2025 | | 2024 | | | Operating | | Finance | | Operating | | Finance | | Weighted-average remaining term in years | | 4.4 | | | 4.1 | | | 4.8 | | | 8.2 | | | Weighted-average discount rate | | 4.5 | | % | | 5.0 | | % | | 4.2 | | % | | 5.0 | | % |
Future minimum lease payments are as follows: | | | | | | | | | | | | | | | | | | | | | | (Millions) | | Operating | | Finance | | 2026 | | $ | 113 | | | $ | 34 | | | 2027 | | 94 | | | 16 | | | 2028 | | 71 | | | 9 | | | 2029 | | 55 | | | 7 | | | 2030 | | 31 | | | 3 | | | Thereafter | | 30 | | | 8 | | | Total future undiscounted lease payments | | 394 | | | 77 | | | Less interest | | 39 | | | 7 | | | Total reported lease liability | | $ | 355 | | | $ | 70 | |
The following table summarizes cash flow and other information related to leases: | | | | | | | | | | | | | | | | | | | | | | (Millions) | | 2025 | | 2024 | | 2023 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | Operating cash flows from operating leases | | $ | 111 | | | $ | 95 | | | $ | 84 | | | Operating cash flows from finance leases | | $ | 4 | | | $ | 2 | | | $ | — | | | Financing cash flows from finance leases | | $ | 31 | | | $ | 20 | | | $ | 17 | | | | | | | | | | ROU assets obtained in exchange for lease obligations: | | | | | | | | Operating leases | | $ | 93 | | | $ | 153 | | | $ | 117 | | Finance leases | | $ | 37 | | | $ | 55 | | | $ | 17 | | | | | | | | | | ROU assets obtained with business acquired: | | | | | | | | Operating leases | | | | $ | 15 | | | | | Finance leases | | | | $ | 13 | | | |
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