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Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Balance sheet classification of lease assets and liabilities
Lease Balances
(In millions)
December 31,20212020
Assets
Operating lease assets (1)
$575 $504 
Finance lease assets (2)
487 267 
Total lease assets$1,062 $771 
Liabilities
Current:
Operating lease liabilities (1)
$122 $125 
Finance lease liabilities (2)
130 104 
Noncurrent:
Operating lease liabilities (1)
615 471 
Finance lease liabilities (2)
313 271 
   Total lease liabilities$1,180 $971 
(1)Operating lease assets are included within other long-term assets, and operating lease liabilities are included within accounts payable and accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the consolidated balance sheets.
(2)Finance lease assets are included within property and equipment, net and finance lease liabilities are included within short-term and current maturities of long-term debt (current portion) and long-term debt (noncurrent portion) in the consolidated balance sheets.
Schedule of cost, supplemental cash flow and other information related to leases
Components of Lease Cost
(In millions)
Year Ended December 31,202120202019
Operating lease cost (1)
$162 $198 $207 
Finance lease cost: (2)
     Amortization of right-of-use assets
122 150 40 
     Interest on lease liabilities
23 21 8 
Total lease cost
$307 $369 $255 
(1)Operating lease expense is included within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, in the consolidated statements of income. Operating lease expense includes approximately $39 million, $50 million and $56 million of variable lease costs for the years ended December 31, 2021, 2020 and 2019, respectively.
(2)Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense, net in the consolidated statements of income. Finance lease expense includes $62 million of accelerated amortization associated with the termination of certain vendor contracts during the year ended December 31, 2020 (see Note 17).
Supplemental Cash Flow Information
(In millions)
Year Ended December 31,202120202019
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$153 $155 $139 
     Operating cash flows from finance leases23 21 8 
     Financing cash flows from finance leases161 187 37 
Right-of-use assets obtained in exchange for lease liabilities: (1)
     Operating leases$197 $46 $441 
     Finance leases231 399 288 
(1)Amounts in 2019 include the right-of-use assets and lease liabilities obtained through the acquisition of First Data.
Lease Term and Discount Rate
December 31,20212020
Weighted-average remaining lease term:
     Operating leases10 years6 years
     Finance leases3 years4 years
Weighted-average discount rate:
     Operating leases2.7 %2.9 %
     Finance leases2.7 %3.5 %
Operating lease maturity
Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021:
(In millions)
Year Ending December 31,
Operating Leases (1)
Finance Leases
2022$125 $138 
2023112 146 
2024101 127 
202582 45 
202674 14 
Thereafter351 — 
     Total lease payments845 470 
Less: Interest(108)(27)
     Present value of lease liabilities$737 $443 
(1)Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised.
Finance lease maturity under
Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2021:
(In millions)
Year Ending December 31,
Operating Leases (1)
Finance Leases
2022$125 $138 
2023112 146 
2024101 127 
202582 45 
202674 14 
Thereafter351 — 
     Total lease payments845 470 
Less: Interest(108)(27)
     Present value of lease liabilities$737 $443 
(1)Operating lease payments include $6 million related to options to extend lease terms that are reasonably certain of being exercised.
Schedule of components of lease income
Components of Lease Income
(In millions)
Year Ended December 31,202120202019
Sales-type leases:
   Selling profit (1)
$61 $48 $20 
   Interest income (1)
85 76 33 
Operating lease income (2)
297 257 36 
(1)Selling profit includes $141 million, $106 million and $48 million recorded within product revenue with a corresponding charge of $80 million, $58 million and $28 million recorded in cost of product in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019, respectively. Interest income is included within product revenue in the consolidated statements of income.
(2)Operating lease income includes a nominal amount of variable lease income and is included within product revenue in the consolidated statements of income for each of the years ended December 31, 2021, 2020 and 2019.
Schedule of components of lease income
Components of Lease Income
(In millions)
Year Ended December 31,202120202019
Sales-type leases:
   Selling profit (1)
$61 $48 $20 
   Interest income (1)
85 76 33 
Operating lease income (2)
297 257 36 
(1)Selling profit includes $141 million, $106 million and $48 million recorded within product revenue with a corresponding charge of $80 million, $58 million and $28 million recorded in cost of product in the consolidated statements of income for the years ended December 31, 2021, 2020 and 2019, respectively. Interest income is included within product revenue in the consolidated statements of income.
(2)Operating lease income includes a nominal amount of variable lease income and is included within product revenue in the consolidated statements of income for each of the years ended December 31, 2021, 2020 and 2019.
Schedule of components of net investment in sales-type leases
Components of Net Investment in Sales-Type Leases
(In millions)
December 31,20212020
Minimum lease payments
$395 $355 
Residual values
23 23 
Less: Unearned interest income
(157)(141)
Net investment in leases (1)
$261 $237 
(1)Net investments in leased assets are included within prepaid expenses and other current assets (current portion) and other long-term assets (noncurrent portion) in the consolidated balance sheets.
Schedule of maturities of future minimum lease payments Future minimum lease payments receivable on sales-type leases were as follows at December 31, 2021:
(In millions)
Year Ending December 31,
Sales-Type Leases
2022$164 
2023120 
202476 
202532 
20263 
Thereafter— 
     Total minimum lease payments$395