Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Note 20 – 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 Sheets:

	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)	2022		2021		2020
Operating lease cost	$	124	$	170	$	190
Finance lease cost:
Amortization of ROU assets	33		22		28
Interest on lease liabilities	2		2		3
Total finance lease cost	35		24		31
Variable lease cost	41		39		48
Total lease cost	$	200	$	233	$	269

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	148	$	167	$	189
Operating cash outflows from finance leases	$	2	$	2	$	3
Financing cash outflows from finance leases	$	33	$	22	$	26
ROU assets obtained in exchange for lease obligations:
Operating leases	$	43	$	122	$	189
Finance leases	$	84	$	20	$	9

Operating and finance lease right-of-use ("ROU") assets and lease liabilities were as follows:

(In millions)	December 31, 2022		December 31, 2021
Operating leases: (1)
Operating lease ROU assets in Other assets	$	375	$	478
Accrued expenses and other liabilities	$	114	$	159
Other non-current liabilities	346		436
Total operating lease liabilities	$	460	$	595
Finance leases:
Property and equipment, gross	$	145	$	101
Accumulated depreciation	(48)		(51)
Property and equipment, net	$	97	$	50
Short-term debt	$	33	$	23
Long-term debt	66		28
Total finance lease liabilities	$	99	$	51

(1) Operating leases include $27 million as of December 31, 2021 classified as Assets of businesses held for sale and $28 million as of December 31, 2021 classified as Liabilities of businesses held for sale.

As of December 31, 2022, the weighted average remaining lease term was 5 years for operating leases and 3 years for finance leases, and the weighted average discount rate was 2.80% for operating leases and 3.45% for finance leases.

Maturities of lease liabilities are as follows:

(In millions)	Operating Leases		Finance Leases
2023	$	114	$	35
2024	111		31
2025	84		24
2026	64		10
2027	47		3
Thereafter	74		2
Total lease payments	494		105
Less: imputed interest	34		6
Total	$	460	$	99

Leases

Note 20 – 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 Sheets:

	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)	2022		2021		2020
Operating lease cost	$	124	$	170	$	190
Finance lease cost:
Amortization of ROU assets	33		22		28
Interest on lease liabilities	2		2		3
Total finance lease cost	35		24		31
Variable lease cost	41		39		48
Total lease cost	$	200	$	233	$	269

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	148	$	167	$	189
Operating cash outflows from finance leases	$	2	$	2	$	3
Financing cash outflows from finance leases	$	33	$	22	$	26
ROU assets obtained in exchange for lease obligations:
Operating leases	$	43	$	122	$	189
Finance leases	$	84	$	20	$	9

Operating and finance lease right-of-use ("ROU") assets and lease liabilities were as follows:

(In millions)	December 31, 2022		December 31, 2021
Operating leases: (1)
Operating lease ROU assets in Other assets	$	375	$	478
Accrued expenses and other liabilities	$	114	$	159
Other non-current liabilities	346		436
Total operating lease liabilities	$	460	$	595
Finance leases:
Property and equipment, gross	$	145	$	101
Accumulated depreciation	(48)		(51)
Property and equipment, net	$	97	$	50
Short-term debt	$	33	$	23
Long-term debt	66		28
Total finance lease liabilities	$	99	$	51

(1) Operating leases include $27 million as of December 31, 2021 classified as Assets of businesses held for sale and $28 million as of December 31, 2021 classified as Liabilities of businesses held for sale.

As of December 31, 2022, the weighted average remaining lease term was 5 years for operating leases and 3 years for finance leases, and the weighted average discount rate was 2.80% for operating leases and 3.45% for finance leases.

Maturities of lease liabilities are as follows:

(In millions)	Operating Leases		Finance Leases
2023	$	114	$	35
2024	111		31
2025	84		24
2026	64		10
2027	47		3
Thereafter	74		2
Total lease payments	494		105
Less: imputed interest	34		6
Total	$	460	$	99