Lease Commitments

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease Commitments

Lease Commitments

The classification of operating and finance lease asset and liability balances within the Consolidated Statement of Financial Position is as follows (in millions):

As of December 31		2020		2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	911	$	929
Finance lease assets	Other non-current assets	89		100
Total lease assets		$	1,000	$	1,029
Liabilities
Current lease liabilities
Operating	Other current liabilities	$	204	$	186
Finance	Other current liabilities	30		24
Non-current lease liabilities
Operating	Non-current operating lease liabilities	897		944
Finance	Other non-current liabilities	65		76
Total lease liabilities		$	1,196	$	1,230

The components of lease costs are as follows (in millions):

	Years Ended December 31
	2020		2019
Operating lease cost	$	221	$	234
Finance lease costs
Amortization of leased assets	25		26
Interest on lease liabilities	3		2
Variable lease cost	48		60
Short-term lease cost (1)	10		5
Sublease income	(32)		(32)
Net lease cost	$	275	$	295

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.

Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:

As of December 31	2020		2019
Weighted average remaining lease term (years)
Operating leases	7.4		7.9
Finance leases	4.2		4.4
Weighted average discount rate
Operating leases	2.9	%	3.2	%
Finance leases	1.0	%	2.0	%

Other cash and non-cash related activities are as follows (in millions):

	Years Ended December 31
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	236	$	264
Financing cash flows for finance leases	$	12	$	17
Non-cash related activities
ROU assets obtained in exchange for new operating lease liabilities	$	146	$	155
ROU assets obtained in exchange for new finance lease liabilities	$	13	$	48
Operating lease ROU asset expense (1)	$	178	$	195
Changes in Non-current operating lease liabilities (1)	$	(47)	$	(70)

(1)The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in Cash flows from operations within the Consolidated Statement of Cash Flows.

Maturity analysis of operating and finance leases as of December 31, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2021	$	226	$	31	$	257
2022	209		20		229
2023	160		18		178
2024	130		18		148
2025	110		10		120
Thereafter	382		—		382
Total undiscounted future minimum lease payments	1,217		97		1,314
Less: Imputed interest	(116)		(2)		(118)
Present value of lease liabilities	$	1,101	$	95	$	1,196

Lease Commitments

Lease Commitments

The classification of operating and finance lease asset and liability balances within the Consolidated Statement of Financial Position is as follows (in millions):

As of December 31		2020		2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	911	$	929
Finance lease assets	Other non-current assets	89		100
Total lease assets		$	1,000	$	1,029
Liabilities
Current lease liabilities
Operating	Other current liabilities	$	204	$	186
Finance	Other current liabilities	30		24
Non-current lease liabilities
Operating	Non-current operating lease liabilities	897		944
Finance	Other non-current liabilities	65		76
Total lease liabilities		$	1,196	$	1,230

The components of lease costs are as follows (in millions):

	Years Ended December 31
	2020		2019
Operating lease cost	$	221	$	234
Finance lease costs
Amortization of leased assets	25		26
Interest on lease liabilities	3		2
Variable lease cost	48		60
Short-term lease cost (1)	10		5
Sublease income	(32)		(32)
Net lease cost	$	275	$	295

(1) Short-term lease cost does not include expenses related to leases with a lease term of one month or less.

Weighted average remaining lease term and discount rate related to operating and finance leases are as follows:

As of December 31	2020		2019
Weighted average remaining lease term (years)
Operating leases	7.4		7.9
Finance leases	4.2		4.4
Weighted average discount rate
Operating leases	2.9	%	3.2	%
Finance leases	1.0	%	2.0	%

Other cash and non-cash related activities are as follows (in millions):

	Years Ended December 31
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	236	$	264
Financing cash flows for finance leases	$	12	$	17
Non-cash related activities
ROU assets obtained in exchange for new operating lease liabilities	$	146	$	155
ROU assets obtained in exchange for new finance lease liabilities	$	13	$	48
Operating lease ROU asset expense (1)	$	178	$	195
Changes in Non-current operating lease liabilities (1)	$	(47)	$	(70)

(1)The Company has recorded non-cash changes in Operating lease ROU assets and Non-current operating lease liabilities through Other assets and liabilities in Cash flows from operations within the Consolidated Statement of Cash Flows.

Maturity analysis of operating and finance leases as of December 31, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2021	$	226	$	31	$	257
2022	209		20		229
2023	160		18		178
2024	130		18		148
2025	110		10		120
Thereafter	382		—		382
Total undiscounted future minimum lease payments	1,217		97		1,314
Less: Imputed interest	(116)		(2)		(118)
Present value of lease liabilities	$	1,101	$	95	$	1,196