Leases

9 Months Ended

Sep. 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 acquisition 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 September 30,				Nine Months Ended September 30,
(In millions)	2022		2021		2022		2021
Lease Cost:
Operating lease cost (a)	$	84	$	93	$	262	$	282
Short-term lease cost	1		1		3		4
Variable lease cost	35		38		99		101
Sublease income	(3)		(3)		(12)		(16)
Net lease cost	$	117	$	129	$	352	$	371
Other information:
Operating cash outflows from operating leases					$	286	$	310
Right of use assets obtained in exchange for new operating lease liabilities					$	148	$	282
Weighted-average remaining lease term – real estate					8.4 years		9.0 years

Weighted-average discount rate – real estate leases					2.87%		2.75%

(a) Excludes ROU asset impairment charges.

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


Payment Dates (In millions)	Real Estate Leases
Remainder of 2022	$	90
2023	341
2024	302
2025	272
2026	250
2027	216
Subsequent years	690
Total future lease payments	2,161
Less: Imputed interest	(243)
Total	$	1,918
Current lease liabilities	$	298
Long-term lease liabilities	1,620
Total lease liabilities	$	1,918

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 September 30, 2022, the Company had additional operating real estate leases that had not yet commenced of $39 million. These operating leases will commence over the next 12 months.