Leases

12 Months Ended

Dec. 31, 2023

The Company enters into leases for land, office space, warehouses and equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of December 31, 2023 and 2022.

As of December 31, 2023 and 2022, the Company’s right-of use assets and liabilities for operating leases were as follows:


	2023		2022
Other assets	$	491	$	478

Other accruals	95		108
Other liabilities	420		397
Total operating lease liabilities	$	515	$	505

Lease liabilities for operating leases as of December 31, 2023 were as follows:




2024	$	117
2025	99
2026	79
2027	71
2028	57
Thereafter	199
Total lease commitments	$	622
Less: Interest	(107)
Present value of lease liabilities	$	515

The components of the Company’s operating lease cost for the twelve months ended December 31, 2023 and 2022 were as follows:


	2023		2022
Operating lease cost	$	136	$	138
Short-term lease cost	3		5
Variable lease cost	20		18
Sublease Income	(2)		(1)
Total lease cost	$	157	$	160

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and is not reflected on the Company’s Consolidated Balance Sheets. Variable lease costs are comprised of costs, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance, that are not included in the lease liability and are recognized in the period in which they are incurred.

Supplemental cash flow information related to operating leases for the twelve months ended December 31, 2023 and 2022 was as follows:

▪Payments against amounts included in the measurement of lease liabilities: $171 and $169, respectively

▪Lease assets obtained in exchange for lease liabilities: $139 and $85, respectively.

As of December 31, 2023 and 2022, the weighted-average remaining lease term for operating leases was 8 and 7 years, respectively, and the weighted-average discount rate for operating leases was 4.5% and 3.9%, respectively.

There were no material operating leases that the Company had entered into or that were yet to commence as of December 31, 2023.