Leases

9 Months Ended

Sep. 30, 2023

LEASES

The Company has leases for corporate offices, manufacturing facilities, research and development facilities and certain transportation and office equipment. The Company’s leases have remaining lease terms of up to 50 years, some of which include options to extend the leases for up to 15 years.

The components of lease expense were as follows:


	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
(DOLLARS IN MILLIONS)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating leases
Operating lease cost	$	32	$	31	$	105	$	99
Variable lease cost	10		12		42		36
Total operating lease cost	$	42	$	43	$	147	$	135
Finance leases
Finance lease cost	$	3	$	2	$	7	$	6

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended		Nine Months Ended
(DOLLARS IN MILLIONS)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	94	$	102
Operating cash flows for finance leases	1		—
Financing cash flows for finance leases	6		5
Right-of-use assets obtained in exchange for lease obligations
Operating leases	73		154
Finance leases	17		4

Operating lease right-of-use assets are presented in “Operating lease right-of-use assets” and finance lease right-of-use assets are presented in “Other assets” on the Consolidated Balance Sheets. Operating lease liabilities are presented in “Operating lease liabilities” and finance lease liabilities are presented in “Other liabilities” on the Consolidated Balance Sheets. Any other current liabilities related to operating and finance lease liabilities are presented in “Other current liabilities” on the Consolidated Balance Sheets.