Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 21 – 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)	2023		2022		2021
Operating lease cost	$	115	$	124	$	170
Finance lease cost:
Amortization of ROU assets	41		33		22
Interest on lease liabilities	4		2		2
Total finance lease cost	45		35		24
Variable lease cost	38		41		39
Total lease cost	$	198	$	200	$	233

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	132	$	148	$	167
Operating cash outflows from finance leases	$	4	$	2	$	2
Financing cash outflows from finance leases	$	39	$	33	$	22
ROU assets obtained in exchange for lease obligations:
Operating leases	$	103	$	43	$	122
Finance leases	$	48	$	84	$	20

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

(In millions)	December 31, 2023		December 31, 2022
Operating leases:
Operating lease ROU assets in Other assets	$	370	$	375
Accrued expenses and other liabilities	$	105	$	114
Other non-current liabilities	340		346
Total operating lease liabilities	$	445	$	460
Finance leases:
Property and equipment, gross	$	177	$	145
Accumulated depreciation	(73)		(48)
Property and equipment, net	$	104	$	97
Short-term debt	$	42	$	33
Long-term debt	66		66
Total finance lease liabilities	$	108	$	99

As of December 31, 2023, the weighted average remaining lease term was 6 years for operating leases and 3 years for finance leases, and the weighted average discount rate was 3.45% for operating leases and 4.29% for finance leases.

Maturities of lease liabilities are as follows:

(In millions)	Operating Leases		Finance Leases
2024	$	110	$	46
2025	102		38
2026	83		19
2027	63		6
2028	41		6
Thereafter	98		—
Total lease payments	497		115
Less: imputed interest	52		7
Total	$	445	$	108

Leases

Note 21 – 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)	2023		2022		2021
Operating lease cost	$	115	$	124	$	170
Finance lease cost:
Amortization of ROU assets	41		33		22
Interest on lease liabilities	4		2		2
Total finance lease cost	45		35		24
Variable lease cost	38		41		39
Total lease cost	$	198	$	200	$	233

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	132	$	148	$	167
Operating cash outflows from finance leases	$	4	$	2	$	2
Financing cash outflows from finance leases	$	39	$	33	$	22
ROU assets obtained in exchange for lease obligations:
Operating leases	$	103	$	43	$	122
Finance leases	$	48	$	84	$	20

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

(In millions)	December 31, 2023		December 31, 2022
Operating leases:
Operating lease ROU assets in Other assets	$	370	$	375
Accrued expenses and other liabilities	$	105	$	114
Other non-current liabilities	340		346
Total operating lease liabilities	$	445	$	460
Finance leases:
Property and equipment, gross	$	177	$	145
Accumulated depreciation	(73)		(48)
Property and equipment, net	$	104	$	97
Short-term debt	$	42	$	33
Long-term debt	66		66
Total finance lease liabilities	$	108	$	99

As of December 31, 2023, the weighted average remaining lease term was 6 years for operating leases and 3 years for finance leases, and the weighted average discount rate was 3.45% for operating leases and 4.29% for finance leases.

Maturities of lease liabilities are as follows:

(In millions)	Operating Leases		Finance Leases
2024	$	110	$	46
2025	102		38
2026	83		19
2027	63		6
2028	41		6
Thereafter	98		—
Total lease payments	497		115
Less: imputed interest	52		7
Total	$	445	$	108