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Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Lease Cost
The Company’s total lease cost consists of the following:
Year Ended December 31,
(Dollars in millions)202220212020
Operating lease cost(1)
$25 $26 $24 
Finance lease cost(2):
Amortization of right-of-use assets10 
Interest on lease liabilities
Total lease cost
$40 $39 $36 
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(1)Operating lease expense is included within cost of products, cost of services or general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Company’s Consolidated Statements of Earnings Operating lease cost includes short-term leases of approximately $2 million, $3 million and $5 million and an insignificant amount of variable lease cost for 2022, 2021 and 2020.
(2)Finance lease expense is recorded as depreciation and amortization expense within cost of products, cost of services or general and administrative expenses, dependent upon the nature and use of the ROU asset and interest expense, net in the Company’s Consolidated Statements of Earnings.
Schedule of Balance Sheet Information
Supplemental balance sheet information related to leases is as follows:
December 31,
(Dollars in millions)20222021
ROU assets
Operating leases(1)
$83 $84 
Finance leases(2)
102 104 
Total leased assets
$185 $188 
Liabilities
Current lease liabilities:
Operating(1)
$25 $24 
Finance(2)
Noncurrent lease liabilities:
Operating(1)
68 73 
Finance(2)
105 107 
Total lease liabilities
$206 $210 
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(1)Operating lease assets are included within other noncurrent assets and operating lease liabilities are included within other current liabilities (current portion) and other noncurrent liabilities (noncurrent portion) in the Company’s Consolidated Balance Sheet.
(2)Finance lease assets are included within property, plant and equipment, net and finance lease liabilities are included within short-term borrowings and current portion of long-term debt (current portion) and long-term debt (noncurrent portion) in the Company’s Consolidated Balance Sheet.
Schedule of Supplemental Cash Flows Information
Supplemental cash flow information related to leases is as follows:
Year Ended December 31,
(Dollars in millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$25 $27 $27 
Operating cash flows from finance leases
Financing cash flows from finance leases
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases11 18 16 
Finance leases46 
Schedule of Weighted Average Remaining Lease Term
Lease terms and discount rates related to leases are as follows:
December 31,
20222021
Weighted-average remaining lease term:
Operating leases5 years5 years
Finance leases14 years15 years
Weighted-average discount rate:
Operating leases4.7 %4.3 %
Finance leases4.5 %4.6 %
Maturities of Lease Liability
As of December 31, 2022, future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows:
(Dollars in millions)Operating LeasesFinance Leases
Year Ending December 31,
2023$30 $13 
202427 13 
202518 12 
202612 12 
202710 
Thereafter17 94 
Total lease payments
113 154 
Less: imputed interest20 41 
Present value of lease liabilities
93 113 
Less: current maturities25 
Long-term lease obligations
$68 $105