Leases

3 Months Ended

Mar. 31, 2022

The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. None of the Company’s leases restrict the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options.

Operating leases are recognized on the balance sheet as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at commencement date of the lease.

The following table provides additional information about the Company’s property leases:


	Three Months Ended March 31,
(In millions)		2022		2021
Lease Cost:
Operating lease cost(a)		$	90	$	94
Short-term lease cost		1		1
Variable lease cost		34		37
Sublease income		(5)		(8)
Net lease cost		$	120	$	124
Other information:
Operating cash outflows from operating leases		$	99	$	99
Right of use assets obtained in exchange for new operating lease liabilities		$	51	$	22
Weighted-average remaining lease term – real estate		8.7 years		8.3 years

Weighted-average discount rate – real estate leases		2.75%		2.93%

(a) Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases as of March 31, 2022 are as follows:


Payment Dates (In millions)	Real Estate Leases
Remainder of 2022	$	290
2023	356
2024	314
2025	282
2026	258
2027	223
Subsequent years	710
Total future lease payments	2,433
Less: Imputed interest	(271)
Total	$	2,162
Current lease liabilities	$	331
Long-term lease liabilities	1,831
Total lease liabilities	$	2,162

Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets.

As of March 31, 2022, the Company had additional operating real estate leases that had not yet commenced of $41 million. These operating leases will commence over the next 12 months.