Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lessee, Operating Leases [Text Block]

Note 11.    Leases

As a lessee, the company leases certain logistics, office, and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have remaining lease terms between 1 month and 30 years, and some include options to extend (generally for 1 to 10 years) or have options to terminate the arrangement within 1 year.

The company has guaranteed the residual value of three leased operating facilities with lease terms ending in 2023, 2024 and 2025. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 10). The aggregate maximum guarantee under these three lease arrangements is $147 million. Operating lease ROU assets and lease liabilities for these lease arrangements are recorded on the consolidated balance sheet as of December 31, 2021, but exclude any amounts for residual value guarantees.

As a lessee, the consolidated financial statements include the following relating to operating leases:

(In millions)	2021			2020			2019
Balance sheet
ROU assets	$	1,531		$	775
Operating lease liabilities - current	266			184
Operating lease liabilities - noncurrent	1,203			626
Statement of income
Operating lease costs	$	254		$	224		$	208
Variable lease costs	66			49			41
Statement of cash flows
Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities	$	288		$	222		$	208
Operating lease ROU assets obtained in exchange for new operating lease liabilities	293			202			205
Weighted average at end of year
Remaining operating lease term	9.9 years			6.3 years			6.2 years
Discount rate	2.6		%	3.4		%	4.0		%

ROU assets are classified in other assets in the consolidated balance sheet. Operating lease liabilities are classified in other accrued expenses and other long-term liabilities, respectively, in the consolidated balance sheet.

Lease costs arising from finance leases, short-term leases, and sublease income are not material. See Note 10 for additional information relating to finance leases.

As of December 31, 2021, future payments of operating lease liabilities are as follows:

(In millions)
2022	$	303
2023	248
2024	193
2025	144
2026	120
2027 and thereafter	650
Total lease payments	1,658
Less: imputed interest	189
Total operating lease liability	$	1,469

As a lessor, operating leases, sales-type leases and direct financing leases are not material.