Leases

12 Months Ended

Dec. 31, 2023

3. Leases

The Company has operating leases for offices, manufacturing and research buildings, machinery, cars, data processing and other equipment. The Company’s leases have remaining lease terms of 1-44 years, some of which include options to extend the leases for up to 25 years, and some of which include options to terminate the leases within one year.

As of December 31, 2023, the Company has no additional material operating leases that have not yet commenced.

The following tables provide information about the Company’s operating leases. The Company has not identified any material finance leases as of December 31, 2023; therefore, the finance lease components have not been disclosed in the tables below.


Lease cost
(Dollars in millions)
	2023			2022			2021
Operating lease cost	$	54		$	50		$	44
Short-term lease cost		8			9			10
Variable lease cost		5			4			4
Sublease income		(1	)		(1	)		(2	)
Total lease cost	$	66		$	62		$	56


Other information
(Dollars in millions)	Year ended or as of December 31,
	2023			2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	47		$	42
Right-of-use assets obtained in exchange for new operating lease liabilities		70			74
Weighted-average remaining lease term - operating leases	9.4 years			9.7 years
Weighted-average discount rate - operating leases		3.2	%		2.8	%


Maturities of operating lease liabilities (undiscounted cash flows) are as follows:
(Dollars in millions)
	Maturities
2024	$	40
2025		33
2026		24
2027		19
2028		13
Thereafter		77
Total operating lease payments		206
Less imputed interest		(31	)
Total operating lease liabilities	$	175