Leases

12 Months Ended

Dec. 31, 2025

(12)

Leases

We are party to contracts where we lease property from others under contracts classified as operating leases. We primarily lease buildings, offices, facilities and equipment. Operating lease right-of-use assets are included in other assets and operating lease liabilities are included in accounts payable, accruals and other liabilities. Information related to our operating leases follows (dollars in millions).


	Right-of-use assets		Lease liabilities		Weighted average remaining term in years		Weighted average discount rate used to measure liabilities
December 31, 2025	$	6,020	$	6,290		7.8		4.8	%
December 31, 2024		5,843		5,996		7.5		4.5	%

A summary of our remaining future operating lease payments reconciled to lease liabilities as of December 31, 2025 and December 31, 2024 follows (in millions).


	Year 1		Year 2		Year 3		Year 4		Year 5		Thereafter		Total lease payments		Amount representing interest			Lease liabilities
December 31:
2025	$	1,437	$	1,269	$	1,022	$	827	$	643	$	2,546	$	7,744	$	(1,454	)	$	6,290
2024		1,491		1,161		982		766		600		2,197		7,197		(1,201	)		5,996

Components of operating lease expense for each of the three years ending December 31, 2025 are summarized as follows (in millions).


	2025		2024		2023
Operating lease expense	$	1,647	$	1,652	$	1,535
Short-term lease expense		170		171		219
Variable lease expense		209		225		216
	$	2,026	$	2,048	$	1,970