XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in millions):
|  |  |  | December 31,
Category |  | Classification |  | 2023 |  | 2022
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 1,030 |  |  | $ | 1,033 |
Financing |  | Other assets, net |  | 210 |  |  | 91 |
Total leased assets |  |  |  | $ | 1,240 |  |  | $ | 1,124 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 242 |  |  | $ | 230 |
Financing |  | Other current liabilities |  | 36 |  |  | 33 |
Non-current: |  |  |  |  |  |
Operating |  | Non-current operating lease liabilities |  | 1,089 |  |  | 1,080 |
Financing |  | Other liabilities |  | 72 |  |  | 58 |
Total lease liabilities |  |  |  | $ | 1,439 |  |  | $ | 1,401 |
Components of lease cost are as follows (dollars in millions):
|  |  |  | Year Ended December 31,
Component |  | Classification |  | 2023 |  | 2022
Operating lease cost |  | Operating, administrative and other |  | $ | 220 |  |  | $ | 196 |
Financing lease cost: |  |  |  |  |  |
Amortization of right-to-use assets |  | (1) |  | 36 |  |  | 31 |
Interest on lease liabilities |  | Interest expense |  | 1 |  |  | 1 |
Variable lease cost |  | (2) |  | 115 |  |  | 79 |
Sublease income |  | Revenue |  | (5) |  |  | (4) |
Total lease cost |  |  |  | $ | 367 |  |  | $ | 303 |
________________________________________________________________________________________________________________________________________ (1)Amortization costs of $25.2 million and $26.4 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Amortization costs of $10.8 million and $4.2 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. (2)Variable lease costs of $24.0 million and $23.6 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Variable lease costs of $64.1 million and $55.6 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows:
| December 31,
| 2023 |  | 2022
Weighted-average remaining lease term: |  |  |
Operating leases (1) | 41 years |  | 42 years
Financing leases (2) | 71 years |  | 75 years
Weighted-average discount rate: |  |  |
Operating leases (1) | 4.8% |  | 4.5%
Financing leases (2) | 5.2% |  | 5.1%
________________________________________________________________________________________________________________________________________ (1)Operating leases as of December 31, 2023 and 2022 include three 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 7 years (for both years) and weighted-average discount rate would be 3.5% as of December 31, 2023 and 3.0% as of December 31, 2022. (2)Finance leases as of December 31, 2023 and 2022 included a 99 year lease on real estate held for investment. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.5%, respectively, as of December 31, 2023 and 3 years and 1.7%, respectively, as of December 31, 2022. This excludes certain land leases up to 999 years held by our U.K. development business. Maturities of lease liabilities by fiscal year as of December 31, 2023 are as follows (dollars in millions):
| Operating Leases |  | Financing Leases
2024 | $ | 239 |  |  | $ | 38 |
2025 | 226 |  |  | 27 |
2026 | 210 |  |  | 19 |
2027 | 161 |  |  | 11 |
2028 | 127 |  |  | 4 |
Thereafter | 1,241 |  |  | 218 |
Total remaining lease payments at December 31, 2023 | 2,204 |  |  | 317 |
Less: Interest | 873 |  |  | 209 |
Present value of lease liabilities at December 31, 2023 | $ | 1,331 |  |  | $ | 108 |
Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in millions):
| Year Ended December 31,
| 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows from operating leases | $ | 237 |  |  | $ | 237 |
Operating cash outflows from financing leases | 3 |  |  | 2 |
Financing cash outflows from financing leases | 38 |  |  | 38 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 154 |  |  | 164 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 54 |  |  | 31 |
Other non-cash increases in operating lease right-of-use assets (1) | 6 |  |  | 32 |
Other non-cash increases in financing lease right-of-use assets (1) | 100 |  |  | 6 |
________________________________________________________________________________________________________________________________________ (1)The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations.
Leases | Leases Supplemental balance sheet information related to our leases is as follows (dollars in millions):
|  |  |  | December 31,
Category |  | Classification |  | 2023 |  | 2022
Assets |  |  |  |  |  |
Operating |  | Operating lease assets |  | $ | 1,030 |  |  | $ | 1,033 |
Financing |  | Other assets, net |  | 210 |  |  | 91 |
Total leased assets |  |  |  | $ | 1,240 |  |  | $ | 1,124 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Operating lease liabilities |  | $ | 242 |  |  | $ | 230 |
Financing |  | Other current liabilities |  | 36 |  |  | 33 |
Non-current: |  |  |  |  |  |
Operating |  | Non-current operating lease liabilities |  | 1,089 |  |  | 1,080 |
Financing |  | Other liabilities |  | 72 |  |  | 58 |
Total lease liabilities |  |  |  | $ | 1,439 |  |  | $ | 1,401 |
Components of lease cost are as follows (dollars in millions):
|  |  |  | Year Ended December 31,
Component |  | Classification |  | 2023 |  | 2022
Operating lease cost |  | Operating, administrative and other |  | $ | 220 |  |  | $ | 196 |
Financing lease cost: |  |  |  |  |  |
Amortization of right-to-use assets |  | (1) |  | 36 |  |  | 31 |
Interest on lease liabilities |  | Interest expense |  | 1 |  |  | 1 |
Variable lease cost |  | (2) |  | 115 |  |  | 79 |
Sublease income |  | Revenue |  | (5) |  |  | (4) |
Total lease cost |  |  |  | $ | 367 |  |  | $ | 303 |
________________________________________________________________________________________________________________________________________ (1)Amortization costs of $25.2 million and $26.4 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Amortization costs of $10.8 million and $4.2 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. (2)Variable lease costs of $24.0 million and $23.6 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Variable lease costs of $64.1 million and $55.6 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively. Weighted average remaining lease term and discount rate for our operating and finance leases are as follows:
| December 31,
| 2023 |  | 2022
Weighted-average remaining lease term: |  |  |
Operating leases (1) | 41 years |  | 42 years
Financing leases (2) | 71 years |  | 75 years
Weighted-average discount rate: |  |  |
Operating leases (1) | 4.8% |  | 4.5%
Financing leases (2) | 5.2% |  | 5.1%
________________________________________________________________________________________________________________________________________ (1)Operating leases as of December 31, 2023 and 2022 include three 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 7 years (for both years) and weighted-average discount rate would be 3.5% as of December 31, 2023 and 3.0% as of December 31, 2022. (2)Finance leases as of December 31, 2023 and 2022 included a 99 year lease on real estate held for investment. If excluded, the weighted-average remaining lease term and weighted-average discount rate would be 3 years and 2.5%, respectively, as of December 31, 2023 and 3 years and 1.7%, respectively, as of December 31, 2022. This excludes certain land leases up to 999 years held by our U.K. development business. Maturities of lease liabilities by fiscal year as of December 31, 2023 are as follows (dollars in millions):
| Operating Leases |  | Financing Leases
2024 | $ | 239 |  |  | $ | 38 |
2025 | 226 |  |  | 27 |
2026 | 210 |  |  | 19 |
2027 | 161 |  |  | 11 |
2028 | 127 |  |  | 4 |
Thereafter | 1,241 |  |  | 218 |
Total remaining lease payments at December 31, 2023 | 2,204 |  |  | 317 |
Less: Interest | 873 |  |  | 209 |
Present value of lease liabilities at December 31, 2023 | $ | 1,331 |  |  | $ | 108 |
Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in millions):
| Year Ended December 31,
| 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows from operating leases | $ | 237 |  |  | $ | 237 |
Operating cash outflows from financing leases | 3 |  |  | 2 |
Financing cash outflows from financing leases | 38 |  |  | 38 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 154 |  |  | 164 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 54 |  |  | 31 |
Other non-cash increases in operating lease right-of-use assets (1) | 6 |  |  | 32 |
Other non-cash increases in financing lease right-of-use assets (1) | 100 |  |  | 6 |
________________________________________________________________________________________________________________________________________ (1)The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration