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Leases (Notes) | 12 Months Ended
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Dec. 31, 2023
Leases [Abstract] |
Leases | LEASES The Company has leases for corporate offices, manufacturing facilities, research and development facilities and certain transportation and office equipment, the majority of which are operating leases. 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:
| December 31,
(DOLLARS IN MILLIONS) | 2023 |  | 2022 |  | 2021
Operating leases |  |  |  |  |
Operating lease cost | $ | 137 |  |  | $ | 134 |  |  | $ | 133 |
Variable lease cost | 56 |  |  | 53 |  |  | 35 |
Total operating lease cost | $ | 193 |  |  | $ | 187 |  |  | $ | 168 |
Finance leases |  |  |  |  |
Finance lease cost | $ | 10 |  |  | $ | 8 |  |  | $ | 7 |
Supplemental cash flow information related to leases was as follows:
| December 31,
(DOLLARS IN MILLIONS) | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash flows for operating leases | $ | 122 |  |  | $ | 135 |  |  | $ | 129 |
Operating cash flows for finance leases | 1 |  |  | — |  |  | — |
Financing cash flows for finance leases | 8 |  |  | 7 |  |  | 6 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |
Operating leases | 49 |  |  | 174 |  |  | 88 |
Finance leases | 22 |  |  | 7 |  |  | 15 |
Supplemental balance sheet information related to leases was as follows:
| December 31,
(DOLLARS IN MILLIONS) | 2023 |  | 2022
Operating Leases |  |  |
Operating lease right-of-use assets | $ | 689 |  |  | $ | 743 |
Current operating lease obligations(2) | 85 |  |  | 86 |
Operating lease liabilities | 642 |  |  | 672 |
Total operating lease liabilities | $ | 727 |  |  | $ | 758 |
Finance Leases |  |  |
Finance lease right-of-use assets(1) | $ | 26 |  |  | $ | 22 |
Current finance lease obligations(2) | 7 |  |  | 5 |
Finance lease liabilities(3) | 18 |  |  | 12 |
Total finance lease liabilities | $ | 25 |  |  | $ | 17 |
_______________________ (1)Presented in Other assets on the Consolidated Balance Sheets. (2)Presented in Other current liabilities on the Consolidated Balance Sheets. (3)Presented in Other liabilities on the Consolidated Balance Sheets. Weighted average remaining lease term and discount rate were as follows:
| December 31,
| 2023 |  | 2022
Weighted average remaining lease term in years |  |  |
Operating leases | 9.9 |  | 10.6
Finance leases | 3.5 |  | 4.0
Weighted average discount rate |  |  |
Operating leases | 4.24 | % |  | 3.83 | %
Finance leases | 4.33 | % |  | 2.59 | %
Maturities of lease liabilities as of December 31, 2023 were as follows:
(DOLLARS IN MILLIONS) | Operating Leases |  | Finance Leases |  | Total
2024 | $ | 113 |  |  | $ | 9 |  |  | $ | 122 |
2025 | 110 |  |  | 8 |  |  | 118 |
2026 | 101 |  |  | 7 |  |  | 108 |
2027 | 87 |  |  | 4 |  |  | 91 |
2028 | 77 |  |  | — |  |  | 77 |
Thereafter | 410 |  |  | — |  |  | 410 |
Total undiscounted liabilities | 898 |  |  | 28 |  |  | 926 |
Less: Imputed interest | (171) |  |  | (3) |  |  | (174) |
Total lease liabilities | $ | 727 |  |  | $ | 25 |  |  | $ | 752 |
Right-of-use assets and lease liabilities acquired from N&B were remeasured at the present value of the future minimum lease payments over the remaining lease term utilizing an updated incremental borrowing rate of the Company as if the acquired leases were new leases as of the Closing Date. Right-of-use assets were further adjusted for any off-market terms of the lease. The remaining lease term is based on the remaining term at the Closing Date plus any renewal or extension options that the Company is reasonably certain will be exercised. Additionally, the Company has elected short-term lease treatment for those acquired lease contracts which, at the Closing Date, have a remaining lease term of 12 months or less. For the leases acquired through the Transactions, the Company will retain the previous lease classification. This resulted in an increase in both operating lease right-of-use assets and operating lease liabilities of approximately $525 million and $523 million, respectively, as of the Closing Date. As a result of the Company’s acquisition of Health Wright, there was an increase of approximately $22 million in finance lease right-of-use assets and $21 million in finance lease liabilities as of the Acquisition Date. In the fourth quarter of 2022, the Company exercised its option to purchase the asset and, as such, de-recognized the finance lease right-of-use assets and finance lease liabilities.

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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