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Leasing Arrangements (Tables)

12 Months Ended

Dec. 31, 2023

Components of Net Lease Cost, and Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases

The components of net lease cost were as follows:


		(dollars in millions)
Years Ended December 31,	Classification	2023		2022		2021
Operating lease cost(1)	Cost of services Selling, general and administrative expense	$	5,432	$	5,345	$	5,248
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	259		224		259
Interest on lease liabilities	Interest expense	69		36		34
Short-term lease cost(1)	Cost of services Selling, general and administrative expense	29		23		21
Variable lease cost(1)	Cost of services Selling, general and administrative expense	313		294		307
Sublease income	Service revenues and other	(210)		(199)		(193)
Total net lease cost		$	5,892	$	5,723	$	5,676

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

Supplemental disclosure for the statements of cash flows related to operating and finance leases were as follows:


	(dollars in millions)
Years Ended December 31,	2023		2022		2021
Cash Flows from Operating Activities
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	(4,929)	$	(4,490)	$	(4,658)
Operating cash flows for finance leases	(69)		(36)		(34)

Cash Flows from Financing Activities
Financing cash flows for finance leases	(612)		(449)		(394)
Supplemental lease cash flow disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	2,634		2,392		9,778
Right-of-use assets obtained in exchange for new finance lease liabilities	968		832		461

Supplemental Disclosure for Balance Sheet related to Finance Leases

Supplemental disclosures for the balance sheet related to finance leases were as follows:


	(dollars in millions)
At December 31,	2023		2022
Assets
Property, plant and equipment, net	$	1,459	$	1,138

Liabilities
Debt maturing within one year	$	753	$	565
Long-term debt	1,338		1,167
Total Finance lease liabilities	$	2,091	$	1,732

Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate related to Leases

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:



At December 31,	2023		2022
Weighted-average remaining lease term (years)
Operating leases	8		8
Finance leases	3		4
Weighted-average discount rate
Operating leases	3.6	%	3.2	%
Finance leases	2.9	%	2.5	%

Lessee, Operating Lease, Liability, Maturity

The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2023:


			(dollars in millions)
Years	Operating Leases		Finance Leases
2024	$	4,763	$	793
2025	4,416		665
2026	4,065		424
2027	3,744		217
2028	2,406		94
Thereafter	9,008		61
Total lease payments	28,402		2,254
Less interest	4,134		163
Present value of lease liabilities	24,268		2,091
Less current obligation	4,266		753
Long-term obligation at December 31, 2023	$	20,002	$	1,338

Finance Lease, Liability, Maturity

The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2023:


			(dollars in millions)
Years	Operating Leases		Finance Leases
2024	$	4,763	$	793
2025	4,416		665
2026	4,065		424
2027	3,744		217
2028	2,406		94
Thereafter	9,008		61
Total lease payments	28,402		2,254
Less interest	4,134		163
Present value of lease liabilities	24,268		2,091
Less current obligation	4,266		753
Long-term obligation at December 31, 2023	$	20,002	$	1,338