Leases

12 Months Ended

Dec. 31, 2023

17.

LEASES

[a]

The Company has entered into leases primarily for real estate, manufacturing equipment and vehicles with terms that range from

to 10 years, excluding land use rights which generally extend over 90 years. These leases often include options to extend the term of the lease, most often for a period of 5 years. When it is reasonably certain that the option will be exercised, the impact of the option is included in the lease term for purposes of determining total future lease payments.

Costs associated with the Company’s operating lease expense were as follows:


	2023		2022
Operating lease expense	$	353	$	344
Short-term lease expense		18		25
Variable lease expense		27		26

Total lease expense	$	398	$	395

Supplemental information related to the Company’s operating leases is as follows:


	2023			2022
Operating cash flows – cash paid	$	366		$	375
New right-of-use assets	$	320		$	167
Weighted-average remaining lease term		8 years			8 years
Weighted-average discount rate		5.4	%		4.7	%

[b]	Operating lease liabilities consist of:


Current operating liabilities	$	399	$	276
Non-current operating lease liabilities		1,319		1,288

Total lease liabilities	$	1,718	$	1,564

[c]	Future annual payments for operating leases are as follows:


	2023 [i]
2024	$	326
2025		291
2026		244
2027		215
2028		186
Thereafter		779

		2,041
Less: amount representing interest		323

Total lease liabilities	$	1,718

[i]

Excludes $143 million of future payments for leases, primarily for manufacturing facilities, commencing during 2024.

[d]	The Company’s finance leases were not material for any of the periods presented.