Leases

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
(In millions)	2022		2021		2022		2021
Lease Cost:
Operating lease cost (a)	$	88	$	95	$	178	$	189
Short-term lease cost	1		2		2		3
Variable lease cost	30		26		64		63
Sublease income	(4)		(5)		(9)		(13)
Net lease cost	$	115	$	118	$	235	$	242
Other information:
Operating cash outflows from operating leases					$	194	$	204
Right of use assets obtained in exchange for new operating lease liabilities					$	114	$	251
Weighted-average remaining lease term – real estate					8.6 years		9.1 years

Weighted-average discount rate – real estate leases					2.75%		2.76%

(a) Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases as of June 30, 2022 are as follows:


Payment Dates (In millions)	Real Estate Leases
Remainder of 2022	$	187
2023	352
2024	311
2025	280
2026	257
2027	222
Subsequent years	714
Total future lease payments	2,323
Less: Imputed interest	(257)
Total	$	2,066
Current lease liabilities	$	314
Long-term lease liabilities	1,752
Total lease liabilities	$	2,066

Note: The 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 June 30, 2022, the Company had additional operating real estate leases that had not yet commenced of $38 million. These operating leases will commence over the next 12 months.