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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Operating Leases For some of our offices and data centers, we have entered into non-cancelable operating lease agreements with various expiration dates through 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments. Total operating lease costs was $100 million and $83 million, excluding short-term lease costs, variable lease costs and sublease income each of which were immaterial, for each of the years ended December 31, 2021 and 2020, respectively. Total cash paid for amounts included in the measurement of operating lease liabilities was $75 million and $59 million for the years ended December 31, 2021 and 2020, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets was $223 million and $112 million for the years ended December 31, 2021 and 2020, respectively, of which the increase is largely related to additional office facilities located in Santa Clara, California in line with the original commitment. As of December 31, 2021, the weighted-average remaining lease term is nine years and the weighted-average discount rate is 3%. Maturities of operating lease liabilities as of December 31, 2021 are presented in the table below (in millions):
Years Ending December 31,
2022 |  | $ | 97 |
2023 |  | 104 |
2024 |  | 86 |
2025 |  | 75 |
2026 |  | 56 |
Thereafter |  | 323 |
Total operating lease payments |  | 741 |
Less: imputed interest |  | (103) |
Present value of operating lease liabilities |  | $ | 638 |
In addition to the amounts above, as of December 31, 2021, we have operating leases, primarily for offices, that have not yet commenced with undiscounted cash flows of $208 million. These operating leases will commence in 2022 with lease terms of four to thirteen years. Othe r Contractual Commitments Other contractual commitments consist of data center and IT operations and sales and marketing activities related to our daily business operations. Future minimum payments under our non-cancelable purchase commitments as of December 31, 2021 are presented in the table below (in millions):
|  | Purchase Obligations (1)
Years Ending December 31, |  |
2022 |  | $ | 153 |
2023 |  | 113 |
2024 |  | 55 |
2025 |  | 34 |
2026 |  | 24 |
Thereafter |  | 4 |
Total |  | $ | 383 |
(1)Not included in the table above are certain purchase commitments related to our future annual Knowledge user conferences and other customer or sales conferences to be held in 2022 and future years. If we had canceled these contractual commitments as of December 31, 2021 we would have been obligated to pay cancellation penalties of approximately $41 million in aggregate. In addition to the amounts above, we expect payment for the investment in Celonis SE of $100 million in the first quarter of 2022 and the repayments of our 2022 Notes and 2030 Notes with an aggregate principal amount of $92 million and $1.5 billion due on June 1, 2022 and September 1, 2030, respectively. Refer to Note 11 and Note 19 for further information regarding our Notes and the Celonis SE investment. Further, $28 million of unrecognized tax benefits have been recorded as liabilities as of December 31, 2021. Letters of Credit As of December 31, 2021, we had letters of credit in the aggregate amount of $21 million, primarily in connection with our customer contracts and operating leases. Legal Proceedings From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. Generally, our subscription agreements require us to defend our customers for third-party intellectual property infringement and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the consolidated financial statements.

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