Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

10. Leases

We have facilities and vehicles under various non-cancellable operating leases with third parties and an equipment finance lease with a third party. The operating leases generally have remaining terms ranging from 1 to 15 years, inclusive of renewal options that are reasonably certain of exercise. The finance lease has a remaining term of 30 years.

Supplemental information for our lease portfolio is as follows:

			As of December 31,
(MILLIONS OF DOLLARS, EXCEPT LEASE TERM AND DISCOUNT RATE AMOUNTS)			2023			2022
Supplemental Balance Sheet information:
Operating lease right of use assets			$	230		$	220
Finance lease right of use assets (in Other noncurrent assets)			9			—
Total lease assets			$	239		$	220
Lease liabilities:
Operating lease liabilities - current (in Other current liabilities)			$	48		$	43
Finance lease liabilities - current (in Other current liabilities)			1			—
Operating lease liabilities - noncurrent			188			186
Finance lease liabilities - noncurrent (in Other noncurrent liabilities)			8			—
Total lease liabilities			$	245		$	229
Weighted-average remaining lease term—operating leases (years)			7.26			7.72
Weighted-average remaining lease term—finance leases (years)			30.27			0.00
Weighted-average discount rate—operating leases			3.41		%	2.78		%
Weighted-average discount rate—finance leases			4.99		%	—		%
	Year Ended December 31,
(MILLIONS OF DOLLARS)	2023		2022			2021
Supplemental Income Statement information for operating leases:
Operating lease expense	$	56	$	51		$	50
Variable lease costs	20		12			19
Short-term lease costs not included in the measurement of lease liabilities	11		12			9
Supplemental Income Statement information for finance leases:
Amortization of right-of-use assets	1		—			—
Total lease costs	$	88	$	75		$	78
Supplemental Cash Flow information for leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	57	$	51		$	47
Lease obligations obtained in exchange for right-of-use assets - operating (non-cash)	73		99			39
Lease obligations obtained in exchange for right-of-use assets – finance (non-cash)	9		—			—

Future minimum lease payments under non-cancellable lease contracts as of December 31, 2023 are as follows:

													Total		Less:
											After		Lease		Imputed
(MILLIONS OF DOLLARS)	2024		2025		2026		2027		2028		2028		Payments		Interest		Total
Operating leases	$	57	$	48	$	38	$	30	$	25	$	73	$	271	$	(35)	$	236
Finance leases	$	2	$	1	$	1	$	1	$	1	$	6	$	12	$	(3)	$	9

Leases

10. Leases

We have facilities and vehicles under various non-cancellable operating leases with third parties and an equipment finance lease with a third party. The operating leases generally have remaining terms ranging from 1 to 15 years, inclusive of renewal options that are reasonably certain of exercise. The finance lease has a remaining term of 30 years.

Supplemental information for our lease portfolio is as follows:

			As of December 31,
(MILLIONS OF DOLLARS, EXCEPT LEASE TERM AND DISCOUNT RATE AMOUNTS)			2023			2022
Supplemental Balance Sheet information:
Operating lease right of use assets			$	230		$	220
Finance lease right of use assets (in Other noncurrent assets)			9			—
Total lease assets			$	239		$	220
Lease liabilities:
Operating lease liabilities - current (in Other current liabilities)			$	48		$	43
Finance lease liabilities - current (in Other current liabilities)			1			—
Operating lease liabilities - noncurrent			188			186
Finance lease liabilities - noncurrent (in Other noncurrent liabilities)			8			—
Total lease liabilities			$	245		$	229
Weighted-average remaining lease term—operating leases (years)			7.26			7.72
Weighted-average remaining lease term—finance leases (years)			30.27			0.00
Weighted-average discount rate—operating leases			3.41		%	2.78		%
Weighted-average discount rate—finance leases			4.99		%	—		%
	Year Ended December 31,
(MILLIONS OF DOLLARS)	2023		2022			2021
Supplemental Income Statement information for operating leases:
Operating lease expense	$	56	$	51		$	50
Variable lease costs	20		12			19
Short-term lease costs not included in the measurement of lease liabilities	11		12			9
Supplemental Income Statement information for finance leases:
Amortization of right-of-use assets	1		—			—
Total lease costs	$	88	$	75		$	78
Supplemental Cash Flow information for leases
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$	57	$	51		$	47
Lease obligations obtained in exchange for right-of-use assets - operating (non-cash)	73		99			39
Lease obligations obtained in exchange for right-of-use assets – finance (non-cash)	9		—			—

Future minimum lease payments under non-cancellable lease contracts as of December 31, 2023 are as follows:

													Total		Less:
											After		Lease		Imputed
(MILLIONS OF DOLLARS)	2024		2025		2026		2027		2028		2028		Payments		Interest		Total
Operating leases	$	57	$	48	$	38	$	30	$	25	$	73	$	271	$	(35)	$	236
Finance leases	$	2	$	1	$	1	$	1	$	1	$	6	$	12	$	(3)	$	9