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Leases | 3 Months Ended
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Mar. 31, 2021
Leases [Abstract] |
Leases | Leases A lease is defined as a party obtaining the right to use an asset legally owned by another party. The Company determines if an arrangement is a lease at inception. Operating leases are recognized in the balance sheet as Right-of-Use ("ROU") assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at commencement date of the lease. The Company uses discount rates to determine the present value of future lease payments. The Company primarily uses its incremental borrowing rate adjusted to reflect a secured rate, based on the information available for leases, including the lease term and interest rate environment in the country in which the lease exists. The lease terms used to calculate the ROU asset and lease liability may include options to extend or terminate when it is reasonably certain that the Company will exercise that option. 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. Leases are negotiated with third-parties and, in some instances contain renewal, expansion and termination options. The Company also subleases certain office facilities to third-parties when the Company no longer utilizes the space. None of the Company’s leases restrict the payment of dividends or the incurrence of debt or additional lease obligations, or contain significant purchase options. In addition to the base rental costs, our lease agreements generally provide for rent escalations resulting from increased assessments for real estate taxes and other charges. A portion of our real estate lease portfolio contains base rents subject to annual changes in the Consumer Price Index ("CPI") as well as charges for operating expenses which are reimbursable to the landlord based on actual usage. Changes to the CPI and payments for such reimbursable operating expenses are considered variable and are recognized as variable lease costs in the period in which the obligation for those payments is incurred. Approximately 99% of the Company’s lease obligations are for the use of office space. All of the Company’s material leases are operating leases. As a practical expedient, the Company has elected an accounting policy not to separate non-lease components from lease components and instead account as a single lease component. The Company has also elected not to recognize ROU assets and lease liabilities for leases that, at the commencement date, are for 12 months or less. The following chart provides additional information about the Company’s property leases:
|  |  | Three Months Ended March 31,
(In millions) |  |  |  | 2021 | 2020
Lease Cost: |  |  |  |  |
Operating lease cost |  |  |  | $ | 94 |  | $ | 92 |
Short-term lease cost |  |  |  | 1 |  | 1 |
Variable lease cost |  |  |  | 37 |  | 37 |
Sublease income |  |  |  | (8) |  | (5) |
Net lease cost |  |  |  | $ | 124 |  | $ | 125 |
Other information: |  |  |  |  |
Operating cash outflows from operating leases |  |  |  | $ | 99 |  | $ | 103 |
Right of use assets obtained in exchange for new operating lease liabilities |  |  |  | $ | 22 |  | $ | 79 |
Weighted-average remaining lease term – real estate |  |  |  | 8.3 years | 8.7 years
Weighted-average discount rate – real estate leases |  |  |  | 2.93 | % | 3.06 | %
Future minimum lease payments for the Company’s operating leases as of March 31, 2021 are as follows:
Payment Dates (In millions) | Real Estate Leases
Remainder of 2021 | $ | 308 |
2022 | 381 |
2023 | 332 |
2024 | 289 |
2025 | 257 |
2026 | 235 |
Subsequent years | 678 |
Total future lease payments | 2,480 |
Less: Imputed interest | (288) |
Total | $ | 2,192 |
Current lease liabilities | $ | 342 |
Long-term lease liabilities | 1,850 |
Total lease liabilities | $ | 2,192 |
Note: Table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a right to use asset or liability in the consolidated balance sheets.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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