Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

The Company's leases are primarily for office space and certain computer and other equipment and have terms of up to 35 years.

Accounting policy. The Company determines if an arrangement is a lease and its lease classification (operating or finance) at inception. Both operating and finance leases result in (1) a right-of-use ("ROU") asset that represents our right to use the underlying asset for the lease term and (2) a lease liability that represents our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are reflected in the following lines in the Company's Consolidated Balance Sheet:

	ROU Asset	Current Lease Liability	Non-Current Lease Liability
Operating lease	Other assets	Accrued expenses and other liabilities (current)	Other liabilities (non-current)
Finance lease	Property and equipment	Short-term debt	Long-term debt

These lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Most of the Company's leases do not provide an implicit rate, so the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease pre-payments made and excludes lease incentives for operating leases. The Company's expected life of a lease may consider options to extend or terminate a lease when it is reasonably certain that the Company will exercise that option.

The Company has lease agreements with lease and non-lease components that are accounted for as a single lease component. Operating lease ROU assets are amortized on a straight-line basis over the lease term, which is representative of the pattern in which benefit is expected to be derived from the right to use the underlying asset. Variable lease payments are expensed as incurred and represent amounts that are neither fixed in nature, such as maintenance and other services provided by the lessor, nor tied to an index or rate.

The components of lease expense were as follows:

	For the Years Ended December 31,
(In millions)	2021		2020		2019
Operating lease cost	$	170	$	190	$	188
Finance lease cost:
Amortization of ROU assets	22		28		28
Interest on lease liabilities	2		3		3
Total finance lease cost	24		31		31
Variable lease cost	39		48		50
Total lease cost	$	233	$	269	$	269

In addition, the Company recognized $33 million of one-time selling, general and administrative expenses related to abandonment of leased assets associated with the Organizational Efficiency Plan. See Note 15 for further information.

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	167	$	189	$	173
Operating cash outflows from finance leases	$	2	$	3	$	3
Financing cash outflows from finance leases	$	22	$	26	$	25
ROU assets obtained in exchange for lease obligations:
Operating leases	$	122	$	189	$	89
Finance leases	$	20	$	9	$	68

Operating and finance lease ROU assets and lease liabilities were as follows:

(In millions)	December 31, 2021		December 31, 2020
Operating leases: (1)
Operating lease ROU assets	$	478	$	552
Accrued expenses and other liabilities	$	159	$	152
Other non-current liabilities	436		491
Total operating lease liabilities	$	595	$	643
Finance leases:
Property and equipment, gross	$	101	$	98
Accumulated depreciation	(51)		(46)
Property and equipment, net	$	50	$	52
Short-term debt	$	23	$	18
Long-term debt	28		36
Total finance lease liabilities	$	51	$	54

(1) Operating leases include Assets of $27 million and Liabilities of $28 million in businesses held for sale.

As of December 31, 2021, the weighted average remaining lease term was 5 years for operating leases and 4 years for finance leases, and the weighted average discount rate was 2.81% for operating leases and 3.13% for finance leases.

Maturities of lease liabilities as of December 31, 2021 were as follows:

(In millions)	Operating Leases		Finance Leases
2022	$	152	$	25
2023	132		12
2024	107		6
2025	70		3
2026	66		3
Thereafter	114		6
Total lease payments	641		55
Less: imputed interest	46		4
Total (1)	$	595	$	51

Leases

Leases

The Company's leases are primarily for office space and certain computer and other equipment and have terms of up to 35 years.

Accounting policy. The Company determines if an arrangement is a lease and its lease classification (operating or finance) at inception. Both operating and finance leases result in (1) a right-of-use ("ROU") asset that represents our right to use the underlying asset for the lease term and (2) a lease liability that represents our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are reflected in the following lines in the Company's Consolidated Balance Sheet:

	ROU Asset	Current Lease Liability	Non-Current Lease Liability
Operating lease	Other assets	Accrued expenses and other liabilities (current)	Other liabilities (non-current)
Finance lease	Property and equipment	Short-term debt	Long-term debt

These lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. Most of the Company's leases do not provide an implicit rate, so the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease pre-payments made and excludes lease incentives for operating leases. The Company's expected life of a lease may consider options to extend or terminate a lease when it is reasonably certain that the Company will exercise that option.

The Company has lease agreements with lease and non-lease components that are accounted for as a single lease component. Operating lease ROU assets are amortized on a straight-line basis over the lease term, which is representative of the pattern in which benefit is expected to be derived from the right to use the underlying asset. Variable lease payments are expensed as incurred and represent amounts that are neither fixed in nature, such as maintenance and other services provided by the lessor, nor tied to an index or rate.

The components of lease expense were as follows:

	For the Years Ended December 31,
(In millions)	2021		2020		2019
Operating lease cost	$	170	$	190	$	188
Finance lease cost:
Amortization of ROU assets	22		28		28
Interest on lease liabilities	2		3		3
Total finance lease cost	24		31		31
Variable lease cost	39		48		50
Total lease cost	$	233	$	269	$	269

In addition, the Company recognized $33 million of one-time selling, general and administrative expenses related to abandonment of leased assets associated with the Organizational Efficiency Plan. See Note 15 for further information.

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	167	$	189	$	173
Operating cash outflows from finance leases	$	2	$	3	$	3
Financing cash outflows from finance leases	$	22	$	26	$	25
ROU assets obtained in exchange for lease obligations:
Operating leases	$	122	$	189	$	89
Finance leases	$	20	$	9	$	68

Operating and finance lease ROU assets and lease liabilities were as follows:

(In millions)	December 31, 2021		December 31, 2020
Operating leases: (1)
Operating lease ROU assets	$	478	$	552
Accrued expenses and other liabilities	$	159	$	152
Other non-current liabilities	436		491
Total operating lease liabilities	$	595	$	643
Finance leases:
Property and equipment, gross	$	101	$	98
Accumulated depreciation	(51)		(46)
Property and equipment, net	$	50	$	52
Short-term debt	$	23	$	18
Long-term debt	28		36
Total finance lease liabilities	$	51	$	54

(1) Operating leases include Assets of $27 million and Liabilities of $28 million in businesses held for sale.

As of December 31, 2021, the weighted average remaining lease term was 5 years for operating leases and 4 years for finance leases, and the weighted average discount rate was 2.81% for operating leases and 3.13% for finance leases.

Maturities of lease liabilities as of December 31, 2021 were as follows:

(In millions)	Operating Leases		Finance Leases
2022	$	152	$	25
2023	132		12
2024	107		6
2025	70		3
2026	66		3
Thereafter	114		6
Total lease payments	641		55
Less: imputed interest	46		4
Total (1)	$	595	$	51