v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Lessee, Finance Leases Leases
LESSEE
The following table presents the components of lease cost:
Second QuarterFirst Six Months
(in millions)2026202520262025
Operating lease cost$72 $46 $117 $90 
Finance lease cost
Amortization of right-of-use assets33 28 63 56 
Interest on lease liabilities12 9 24 18 
Variable lease cost(1)
12 9 22 18 
Short-term lease cost4 — 4 — 
Total lease cost$133 $92 $230 $182 
(1)Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation.
The following tables present supplemental information about our leases:
(in millions)Balance Sheet LocationJune 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOther non-current assets$1,107 $845 
Finance lease right-of-use assets(1)
Property, plant, and equipment, net1,030 919 
Liabilities:
Operating lease liabilityOther current liabilities210 127 
Finance lease liabilityOther current liabilities191 179 
Operating lease liabilityOther non-current liabilities951 764 
Finance lease liabilityOther non-current liabilities835 745 
(1)Amounts are presented net of accumulated amortization of $485 million and $426 million as of June 30, 2026 and December 31, 2025, respectively.
First Six Months
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$108 $85 
Operating cash flows from finance leases24 18 
Financing cash flows from finance leases77 63 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
82 21 
Finance leases133 92 
(1)     Includes impacts from operating lease modifications of $26 million during the quarter ended June 30, 2026.
The following table presents information about our weighted average discount rate and remaining lease term:
June 30, 2026December 31, 2025
Weighted average discount rate
Operating leases4.2 %5.3 %
Finance leases4.8 %4.8 %
Weighted average remaining lease term
Operating leases8 years8 years
Finance leases9 years9 years
Schedule of Future Minimum Lease Payments
Future minimum lease payments for non-cancelable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 were as follows:
(in millions)Operating LeasesFinance Leases
Remainder of 2026$122 $137 
2027243 166 
2028192 153 
2029166 143 
2030146 130 
2031121 103 
Thereafter430 407 
Total future minimum lease payments1,420 1,239 
Less: imputed interest(259)(213)
Present value of minimum lease payments$1,161 $1,026 
Significant Leases that Have Not Yet Commenced
As of June 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $239 million. These leases will commence between 2026 and 2028, with initial lease terms ranging from 2 years to 15 years.
LESSOR
We lease coffee machines to customers under contractual arrangements that are primarily recognized as operating lease arrangements. Sales-type leases are immaterial. Lease revenue represented less than 1% of our consolidated net sales for all periods presented.
Lessee, Operating Leases Leases
LESSEE
The following table presents the components of lease cost:
Second QuarterFirst Six Months
(in millions)2026202520262025
Operating lease cost$72 $46 $117 $90 
Finance lease cost
Amortization of right-of-use assets33 28 63 56 
Interest on lease liabilities12 9 24 18 
Variable lease cost(1)
12 9 22 18 
Short-term lease cost4 — 4 — 
Total lease cost$133 $92 $230 $182 
(1)Variable lease cost primarily consists of common area maintenance costs, property taxes, and adjustments for inflation.
The following tables present supplemental information about our leases:
(in millions)Balance Sheet LocationJune 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOther non-current assets$1,107 $845 
Finance lease right-of-use assets(1)
Property, plant, and equipment, net1,030 919 
Liabilities:
Operating lease liabilityOther current liabilities210 127 
Finance lease liabilityOther current liabilities191 179 
Operating lease liabilityOther non-current liabilities951 764 
Finance lease liabilityOther non-current liabilities835 745 
(1)Amounts are presented net of accumulated amortization of $485 million and $426 million as of June 30, 2026 and December 31, 2025, respectively.
First Six Months
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$108 $85 
Operating cash flows from finance leases24 18 
Financing cash flows from finance leases77 63 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
82 21 
Finance leases133 92 
(1)     Includes impacts from operating lease modifications of $26 million during the quarter ended June 30, 2026.
The following table presents information about our weighted average discount rate and remaining lease term:
June 30, 2026December 31, 2025
Weighted average discount rate
Operating leases4.2 %5.3 %
Finance leases4.8 %4.8 %
Weighted average remaining lease term
Operating leases8 years8 years
Finance leases9 years9 years
Schedule of Future Minimum Lease Payments
Future minimum lease payments for non-cancelable leases that have commenced and are reflected in the unaudited Condensed Consolidated Balance Sheets as of June 30, 2026 were as follows:
(in millions)Operating LeasesFinance Leases
Remainder of 2026$122 $137 
2027243 166 
2028192 153 
2029166 143 
2030146 130 
2031121 103 
Thereafter430 407 
Total future minimum lease payments1,420 1,239 
Less: imputed interest(259)(213)
Present value of minimum lease payments$1,161 $1,026 
Significant Leases that Have Not Yet Commenced
As of June 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $239 million. These leases will commence between 2026 and 2028, with initial lease terms ranging from 2 years to 15 years.
LESSOR
We lease coffee machines to customers under contractual arrangements that are primarily recognized as operating lease arrangements. Sales-type leases are immaterial. Lease revenue represented less than 1% of our consolidated net sales for all periods presented.