v3.26.3
Leases
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
Lessee, Finance Leases Leases
LESSEE
The following table presents the components of lease cost:
Third QuarterFirst Nine Months
(in millions)2026202520262025
Operating lease cost$65 $46 $182 $136 
Finance lease cost
Amortization of right-of-use assets33 28 96 84 
Interest on lease liabilities14 10 38 28 
Variable lease cost(1)
18 9 40 27 
Short-term lease cost4 — 8 — 
Total lease cost$134 $93 $364 $275 
(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 LocationSeptember 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOther non-current assets$988 $845 
Finance lease right-of-use assets(1)
Property, plant, and equipment, net963 919 
Liabilities:
Operating lease liabilityOther current liabilities203 127 
Finance lease liabilityOther current liabilities151 179 
Operating lease liabilityOther non-current liabilities828 764 
Finance lease liabilityOther non-current liabilities837 745 
(1)Amounts are presented net of accumulated amortization of $481 million and $426 million as of September 30, 2026 and December 31, 2025, respectively.
First Nine Months
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$180 $130 
Operating cash flows from finance leases38 27 
Financing cash flows from finance leases146 96 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
136 52 
Finance leases172 157 
(1)     Includes impacts from operating lease modifications of $26 million through the first nine months of 2026.
The following table presents information about our weighted average discount rate and remaining lease term:
September 30, 2026December 31, 2025
Weighted average discount rate
Operating leases5.9 %5.3 %
Finance leases5.1 %4.8 %
Weighted average remaining lease term
Operating leases7 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 September 30, 2026 were as follows:
(in millions)Operating LeasesFinance Leases
Remainder of 2026$52 $63 
2027242 174 
2028192 163 
2029164 154 
2030142 141 
2031117 106 
Thereafter355 409 
Total future minimum lease payments1,264 1,210 
Less: imputed interest(233)(222)
Present value of minimum lease payments$1,031 $988 
Significant Leases that Have Not Yet Commenced
As of September 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $187 million. These leases will commence through 2027, with initial lease terms ranging from 1 year 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:
Third QuarterFirst Nine Months
(in millions)2026202520262025
Operating lease cost$65 $46 $182 $136 
Finance lease cost
Amortization of right-of-use assets33 28 96 84 
Interest on lease liabilities14 10 38 28 
Variable lease cost(1)
18 9 40 27 
Short-term lease cost4 — 8 — 
Total lease cost$134 $93 $364 $275 
(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 LocationSeptember 30, 2026December 31, 2025
Assets:
Operating lease right-of-use assetsOther non-current assets$988 $845 
Finance lease right-of-use assets(1)
Property, plant, and equipment, net963 919 
Liabilities:
Operating lease liabilityOther current liabilities203 127 
Finance lease liabilityOther current liabilities151 179 
Operating lease liabilityOther non-current liabilities828 764 
Finance lease liabilityOther non-current liabilities837 745 
(1)Amounts are presented net of accumulated amortization of $481 million and $426 million as of September 30, 2026 and December 31, 2025, respectively.
First Nine Months
(in millions)20262025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$180 $130 
Operating cash flows from finance leases38 27 
Financing cash flows from finance leases146 96 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases(1)
136 52 
Finance leases172 157 
(1)     Includes impacts from operating lease modifications of $26 million through the first nine months of 2026.
The following table presents information about our weighted average discount rate and remaining lease term:
September 30, 2026December 31, 2025
Weighted average discount rate
Operating leases5.9 %5.3 %
Finance leases5.1 %4.8 %
Weighted average remaining lease term
Operating leases7 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 September 30, 2026 were as follows:
(in millions)Operating LeasesFinance Leases
Remainder of 2026$52 $63 
2027242 174 
2028192 163 
2029164 154 
2030142 141 
2031117 106 
Thereafter355 409 
Total future minimum lease payments1,264 1,210 
Less: imputed interest(233)(222)
Present value of minimum lease payments$1,031 $988 
Significant Leases that Have Not Yet Commenced
As of September 30, 2026, we have entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $187 million. These leases will commence through 2027, with initial lease terms ranging from 1 year 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.