Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

LEASES

The Company has leases for corporate offices, manufacturing facilities, research and development facilities, and certain transportation and office equipment. The Company's leases have remaining lease terms of up to 50 years, some of which include options to extend the leases for up to 5 years.

The components of lease expense were as follows:

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
(DOLLARS IN MILLIONS)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Operating lease cost	$	45	$	46	$	92	$	78
Finance lease cost	2		1		4		2

Supplemental cash flow information related to leases was as follows:

	Six Months Ended		Six Months Ended
(DOLLARS IN MILLIONS)	June 30, 2022		June 30, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	70	$	60
Financing cash flows for finance leases	3		2
Right-of-use assets obtained in exchange for lease obligations
Operating leases	30		31
Finance leases	2		15

As a result of the Company's acquisition of Health Wright, there was an increase of approximately $22 million in both financing lease right-of-use assets and financing lease liabilities as of the Acquisition Date.

Operating lease right-of-use assets are presented in “Operating lease right-of-use assets” and financing lease right-of-use assets are presented in “Other assets” on the Consolidated Balance Sheets. Operating lease liabilities are presented in “Operating lease liabilities” and financing lease liabilities are presented in “Other liabilities” on the Consolidated Balance Sheets. Any other current liabilities related to operating and financing lease liabilities are presented in “Other current liabilities” on the Consolidated Balance Sheets.