10.  Leases

All Segments and Holding Company

We have operating and finance leases primarily within our Automotive, Energy and Food Packaging segments. Our Automotive segment leases assets, primarily real estate (operating) and vehicles (financing). Our Energy segment leases certain pipelines, storage tanks, railcars, office space, land and equipment (operating and financing). Our Food Packaging segment leases assets, primarily real estate, equipment and vehicles (primarily operating). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use assets and related liabilities are recorded on the balance sheet for leases with an initial lease term in excess of twelve months and therefore, do not include any lease arrangements with initial lease terms of twelve months or less.

Right-of-use assets and lease liabilities are as follows:

​

​

Additional information with respect to our operating leases as of June 30, 2026 and December 31, 2025 is presented below. The lease terms and discount rates for our Energy, Automotive and Food Packaging segments represent weighted averages based on their respective lease liability balances.

​

​

​

​

​

For the three months ended June 30, 2026 and 2025, lease cost was comprised of (i) operating lease cost of $47 million and $45 million, respectively, (ii) amortization of financing lease right-of-use assets of $2 million and $3 million, respectively, and (iii) interest expense on financing lease liabilities of $2 million and $4 million, respectively. For the six months ended June 30, 2026 and 2025, lease cost was comprised of (i) operating lease cost of $93 million and $89 million, respectively, (ii) amortization of financing lease right-of-use assets of $5 million and $5 million, respectively, and (iii) interest expense on financing lease liabilities of $4 million and $5 million, respectively.

Our Automotive segment accounted for $60 million and $67 million of total lease cost for each of the six months ended June 30, 2026 and 2025, respectively.

Lessor Arrangements

Automotive

Our Automotive segment leases available and excess real estate in certain locations under long-term operating leases. Our Automotive segment’s revenues from operating leases were $12 million and $8 million for the three months ended June 30, 2026 and 2025, respectively, and $17 million and $22 million for the six months ended June 30, 2026 and 2025, respectively. Revenues from operating leases are included in other revenue from operations in the condensed consolidated statements of operations. Our Automotive segment’s expenses from operating leases including variable lease costs were $16 million and $22 million for the three months ended June 30, 2026 and 2025, respectively, and $32 million and $46 million for the six months ended June 30, 2026 and 2025, respectively. Expenses from operating leases are included in other expenses from operations in the condensed consolidated statements of operations.

Real Estate

Our Real Estate segment leases real estate, primarily commercial properties under long-term operating leases. As of June 30, 2026 and December 31, 2025, our Real Estate segment had assets leased to others included in property, plant and equipment of $501 million and $484 million, respectively, net of accumulated depreciation. Our Real Estate segment’s revenues from operating leases were $9 million and $2 million for the three months ended June 30, 2026 and 2025, respectively, and $16 million and $5 million for the six months ended June 30, 2026 and 2025, respectively. Revenues from operating leases are included in other revenue from operations in the condensed consolidated statements of operations. Our Real Estate segment’s expenses from operating leases including variable lease costs were $14 million and $7 million for the three months ended June 30, 2026 and 2025, respectively, and $28 million and $14 million for the six months ended June 30, 2026 and 2025, respectively. Expenses from operating leases are included in other expenses from operations in the condensed consolidated statements of operations.