Leases

12 Months Ended

Dec. 31, 2023

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. The Company’s leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options.

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

In 2023 and 2022, the Company determined that $27 million and $118 million of its ROU assets, respectively, were impaired and recorded a charge to the consolidated statements of income with an offsetting reduction to the ROU assets.

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


For the Years Ended December 31, (In millions, except weighted average data)	2023			2022
Lease Cost:
Operating lease cost (a)	$	324		$	343
Short-term lease cost	5			4
Variable lease cost	122			133
Sublease income	(11)			(17)
Net lease cost	$	440		$	463
Other information:
Operating cash outflows from operating leases	$	379		$	380
Right of use assets obtained in exchange for new operating lease liabilities	$	224		$	196
Weighted average remaining lease term – real estate	7.98 years			8.37 years

Weighted average discount rate – real estate leases	3.35		%	2.90		%

(a) Excludes ROU asset impairment charges.

Future minimum lease payments for the Company’s operating leases at December 31, 2023 are as follows:


(In millions)	Real Estate Leases
2024	$	372
2025	345
2026	319
2027	280
2028	199
Subsequent years	722
Total future lease payments	2,237
Less: imputed interest	(264)
Total	$	1,973
Current lease liabilities	$	312
Long-term lease liabilities	1,661
Total lease liabilities	$	1,973

Note: The above 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.

At December 31, 2023, the Company had additional operating real estate leases that had not yet commenced of $62 million. These operating leases will commence over the next 12 months.