LEASES

12 Months Ended

Dec. 31, 2021

A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, information technology equipment, and automobiles. The majority of the Company's leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities on the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt on the Consolidated Balance Sheet.

A portion of the Company's real estate leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobiles leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments was incurred.


	Years Ended December 31,
	2021			2020
Operating lease cost		$	228		$	214
Variable lease cost		14			18
Short-term lease cost		15			17
Finance lease cost:
Amortization of right-of-use assets		65			69
Interest on lease liability		24			27
Total finance lease cost		89			96
Total lease cost		$	346		$	345

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	215		$	206
Operating cash flows for finance leases		24			32
Financing cash flows for finance leases		67			65
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$	350		$	245
Finance leases		32			27

Supplemental balance sheet information related to leases was as follows:


	December 31,
	2021				2020
Operating leases:
Other assets		$	947			$	773
Accrued liabilities		185				187
Other liabilities		847				641
Total operating lease liabilities		$	1,032			$	828
Finance leases:
Property, plant and equipment		$	325			$	357
Accumulated depreciation		(177)				(180)
Property, plant and equipment—net		$	148			$	177
Current maturities of long-term debt		$	57			$	60
Long-term debt		99				124
Total finance lease liabilities		$	156			$	184
Weighted-average remaining lease term:
Operating leases	9 years				7 years
Finance leases	3 years				3 years
Weighted-average discount rate:
Operating leases		2.3		%		2.9		%
Finance leases		11.0		%		16.3		%

As of December 31, 2021, maturities of lease liabilities were as follows:


	Operating Leases			Finance Leases
2022		$	215		$	77
2023		188			59
2024		153			47
2025		113			14
2026		91			—
Thereafter		404			—
Total lease payments		1,164			197
Less-interest		(132)			(41)
Total		$	1,032		$	156