Annual report [Section 13 and 15(d), not S-K Item 405]

LEASE OBLIGATIONS (Tables)

v3.25.4
LEASE OBLIGATIONS (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Summary of Lease Amounts Included in Statements of Consolidated Financial Position
The following table summarizes the lease amounts included in our Statements of Consolidated Financial Position as of December 31, 2025 and 2024:
Year Ended December 31,
(In millions) Balance Sheet Location 2025 2024
Assets:
Finance Property, plant and equipment, net $ 576  $ 505 
Operating Other non-current assets 292  351 
Current liabilities
Finance Other current liabilities $ 67  $ 63 
Operating Other current liabilities 48  50 
Non-current liabilities
Finance Other non-current liabilities $ 335  $ 319 
Operating Other non-current liabilities 234  275 
Summary of Lease Costs
Lease costs are presented below:
Year Ended December 31,
(In millions) 2025 2024 2023
Operating leases $ 72  $ 64  $ 59 
Finance leases:
Amortization of right-of-use assets 65  38  92 
Interest on lease liabilities 23  15  11 
Short-term leases 161  174  171 
Total $ 321  $ 291  $ 333 
    
Lease terms and discount rates are shown below:
December 31,
2025
Weighted average lease term (in years):
Operating leases 10
Finance leases 9
Weighted average discount rate:
Operating leases 7  %
Finance leases 6  %
Other information related to leases was as follows:
Year Ended December 31,
(In millions) 2025 2024 2023
Cash paid for amounts included in measurement of lease liabilities:
Operating leases within cash flows from operating activities $ 68 $ 62 $ 57
Finance leases within cash flows from operating activities 23 14 11
Finance leases within cash flows from financing activities 67 49 92
Right-of-use assets obtained in exchange for new finance lease liabilities1
87 97 93
Right-of-use assets obtained in exchange for new operating lease liabilities1
10 87 42
1Right-of-use assets obtained as a result of the 2024 Stelco Acquisition are not included.
Summary of Future Minimum Lease Payments under Noncancelable Finance and Operating Leases
The following is a summary of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2025:
(In millions) Finance Leases Operating Leases
2026 $ 88  $ 64 
2027 74  58 
2028 71  47 
2029 65  38 
2030 49  31 
Thereafter 180  158 
Total future minimum lease payments 527  396 
Less: imputed interest 125  114 
Total lease payments 402  282 
Less: current portion of lease liabilities 67  48 
Long-term lease liabilities $ 335  $ 234