LEASES

12 Months Ended

Dec. 31, 2025

NOTE 16: LEASES

The majority of our operating leases are related to our office and warehouse space, and our financing leases are related to vehicles and warehouse space. Our leases have remaining lease terms of approximately 1 year to 25 years. Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments.

Lease Expense


DOLLAR AMOUNTS IN MILLIONS
	2025		2024		2023
Operating lease costs	$	25	$	24	$	22
Financing lease costs		6		4		5
Total lease costs	$	31	$	28	$	27

Supplemental Cash Flow Information


DOLLAR AMOUNTS IN MILLIONS
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	31	$	22	$	22
Financing cash flows for financing leases(1)	$	6	$	5	$	6
ROU assets obtained in exchange for new (modified) lease liabilities:
Operating leases	$	4	$	53	$	14
Financing leases	$	16	$	6	$	6

(1)

Interest expense related to financing leases was immaterial during 2025, 2024 and 2023.

Supplemental Balance Sheet Information Related to Leases


DOLLAR AMOUNTS IN MILLIONS
		DECEMBER 31, 2025		DECEMBER 31, 2024
LEASES	BALANCE SHEET CLASSIFICATION
Assets
Operating lease ROU assets	Other assets	$	125	$	138
Financing lease ROU assets	Property and equipment, net		22		12
Total leased assets		$	147	$	150
Liabilities
Current:
Operating lease liabilities	Accrued liabilities	$	19	$	25
Financing lease liabilities	Accrued liabilities		6		4
Noncurrent:
Operating lease liabilities	Other liabilities		108		121
Financing lease liabilities	Other liabilities		14		8
Total lease liabilities		$	147	$	158

Weighted Average Remaining Lease Term

Weighted Average Discount Rate



	DECEMBER 31, 2025			DECEMBER 31, 2024
Operating leases		4.9	%		4.8	%
Financing leases		5.4	%		5.9	%

Maturities of Lease Liabilities as of December 31, 2025


DOLLAR AMOUNTS IN MILLIONS
	OPERATING LEASES			FINANCING LEASES
2026	$	24		$	6
2027		21			6
2028		19			5
2029		17			3
2030		17			1
Thereafter		64			—
Total lease payments		162			21
Less: interest		(35	)		(1	)
Total present value of lease liabilities	$	127		$	20

DECEMBER 31,
2025

DECEMBER 31,
2024

Operating leases

Financing leases

WEYERHAEUSER CO 10-K