Leases

12 Months Ended

Dec. 31, 2021

8. Leases

The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company intends to exercise a lease option at inception due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews new agreements to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include

implicit interest rates. The Company recorded right-of-use asset impairment charges of $0, $42 million, and $56 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Components of leases are as follows (in millions):

	December 31,
	2021		2020
Current portion of lease liabilities:
Operating	$	76	$	82
Financing		23		28
Total	$	99	$	110

	December 31,
	2021		2020
Long-term portion of lease liability:
Operating	$	357	$	376
Financing		219		236
Total	$	576	$	612

Components of lease expense were as follows (in millions):

	Years Ended
	December 31, 2021			December 31, 2020
Lease cost
Finance lease cost
Amortization of right-of-use assets	$	26		$	31
Interest on lease liabilities		10			11
Operating lease cost		83			96
Short-term lease cost		74			64
Sub-lease income		(9	)		(10	)
Total	$	184		$	192

Supplemental information related to the Company’s leases is as follows (in millions):

	Years Ended
	December 31, 2021			December 31, 2020
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	10		$	11
Operating cash flows - operating leases		83			96
Financing cash flows - finance leases		26			31
Right-of-use assets obtained in exchange for new:
Operating lease liabilities		37			47
Finance lease liabilities	$	9		$	16

Weighted average remaining lease term at December 31, 2021:
Operating leases	11 years			11 years
Finance leases	18 years			18 years
Weighted average discount rate at December 31, 2021:
Operating leases		4.74	%		4.93	%
Finance leases		3.86	%		3.92	%

Future minimum lease commitments for leases with initial or remaining terms of one year or more at December 31, 2021, are payable as follows (in millions):

	Operating			Finance
2022	$	91		$	32
2023		76			25
2024		65			21
2025		54			19
2026		43			17
Thereafter		219			214
Total lease payments		548			328
Less: Interest		(115	)		(86	)
Present value of lease liabilities	$	433		$	242