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 $3 million of ROU assets were impaired for the three months ended March 31, 2026 and recorded a charge to the consolidated statements of income with an offsetting reduction to ROU assets.


	Three Months Ended March 31,
(In millions, except weighted average data)		2026			2025
Lease Cost:
Operating lease cost (a)		$	90		$	86
Short-term lease cost		1			2
Variable lease cost		34			32
Sublease income		(6)			(4)
Net lease cost		$	119		$	116
Other information:
Operating cash outflows from operating leases		$	103		$	98
ROU assets obtained in exchange for new operating lease liabilities		$	85		$	30
Weighted average remaining lease term – real estate leases		7.3 years			7.4 years

Weighted average discount rate – real estate leases		3.82		%	3.71		%


(In millions)	Real Estate Leases
2026 (excludes payments through March 31, 2026)	$	293
2027	365
2028	290
2029	244
2030	209
2031	186
Subsequent years	519
Total future lease payments	2,106
Less: Imputed interest	(257)
Total	$	1,849
Current lease liabilities	$	326
Long-term lease liabilities	1,523
Total lease liabilities	$	1,849

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 March 31, 2026, the Company had additional operating real estate leases that had not yet commenced of $45 million. These operating leases will commence over the next 12 months.