Lease Commitments

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease Commitments

Lease Commitments

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

As of December 31		2023		2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	650	$	699
Finance lease assets	Other non-current assets	26		43
Total lease assets		$	676	$	742
Liabilities
Current lease liabilities
Operating	Other current liabilities	$	159	$	163
Finance	Other current liabilities	23		23
Non-current lease liabilities
Operating	Non-current operating lease liabilities	641		693
Finance	Other non-current liabilities	10		28
Total lease liabilities		$	833	$	907

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

	Years Ended December 31
	2023		2022
Operating lease cost	$	183	$	204
Finance lease costs
Amortization of leased assets	19		28
Interest on lease liabilities	—		1
Variable lease cost	44		38
Short-term lease cost (1)	8		11
Sublease income	(13)		(29)
Net lease cost	$	241	$	253

(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	2023		2022
Weighted average remaining lease term (years)
Operating leases	6.3		6.7
Finance leases	1.5		2.5
Weighted average discount rate
Operating leases	3.6	%	3.1	%
Finance leases	1.0	%	1.0	%

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

	Years Ended December 31
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	206	$	231
Financing cash flows for finance leases	$	19	$	14
Non-cash related activities
ROU assets obtained in exchange for new operating lease liabilities	$	112	$	110
Operating lease ROU asset expense (1)	$	141	$	162
Changes in Non-current operating lease liabilities (1)	$	(52)	$	(79)

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

Maturity analysis of operating and finance leases as of December 31, 2023 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2024	$	177	$	23	$	200
2025	162		10		172
2026	140		—		140
2027	122		—		122
2028	98		—		98
Thereafter	190		—		190
Total undiscounted future minimum lease payments	889		33		922
Less: Imputed interest	(89)		—		(89)
Present value of lease liabilities	$	800	$	33	$	833

Lease Commitments

Lease Commitments

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

As of December 31		2023		2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	650	$	699
Finance lease assets	Other non-current assets	26		43
Total lease assets		$	676	$	742
Liabilities
Current lease liabilities
Operating	Other current liabilities	$	159	$	163
Finance	Other current liabilities	23		23
Non-current lease liabilities
Operating	Non-current operating lease liabilities	641		693
Finance	Other non-current liabilities	10		28
Total lease liabilities		$	833	$	907

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

	Years Ended December 31
	2023		2022
Operating lease cost	$	183	$	204
Finance lease costs
Amortization of leased assets	19		28
Interest on lease liabilities	—		1
Variable lease cost	44		38
Short-term lease cost (1)	8		11
Sublease income	(13)		(29)
Net lease cost	$	241	$	253

(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	2023		2022
Weighted average remaining lease term (years)
Operating leases	6.3		6.7
Finance leases	1.5		2.5
Weighted average discount rate
Operating leases	3.6	%	3.1	%
Finance leases	1.0	%	1.0	%

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

	Years Ended December 31
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	206	$	231
Financing cash flows for finance leases	$	19	$	14
Non-cash related activities
ROU assets obtained in exchange for new operating lease liabilities	$	112	$	110
Operating lease ROU asset expense (1)	$	141	$	162
Changes in Non-current operating lease liabilities (1)	$	(52)	$	(79)

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

Maturity analysis of operating and finance leases as of December 31, 2023 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2024	$	177	$	23	$	200
2025	162		10		172
2026	140		—		140
2027	122		—		122
2028	98		—		98
Thereafter	190		—		190
Total undiscounted future minimum lease payments	889		33		922
Less: Imputed interest	(89)		—		(89)
Present value of lease liabilities	$	800	$	33	$	833