Leases

12 Months Ended

Dec. 31, 2021

LEASES

The Company has operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations and certain equipment, primarily automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for up to 30 years, and some leases include options to terminate the leases within 30 days. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company’s finance leases were not material as of December 31, 2021 and 2020. Right-of-use (“ROU”) assets arising from finance leases are included in property, plant and equipment, net and the liabilities are included in notes payable and current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.

The Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in millions):


		2021		2020			2019
Consolidated Statements of Earnings
Fixed operating lease expense (a)		$	246	$	216		$	196
Variable operating lease expense		59		46			45
Total operating lease expense		$	305	$	262		$	241

Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities		$	243	$	221		$	202
ROU assets obtained in exchange for operating lease obligations		289		246			145

Consolidated Balance Sheets				December 31, 2021			December 31, 2020
Lease Assets and Liabilities	Classification
Operating lease ROU assets	Other long-term assets			$	1,041		$	942

Operating lease liabilities - current	Accrued expenses and other liabilities			$	207		$	189
Operating lease liabilities - long-term	Other long-term liabilities			889			785
Total operating lease liabilities				$	1,096		$	974

Weighted average remaining lease term				8 years			7 years
Weighted average discount rate				2.7		%	2.8		%

(a) Includes short-term leases and sublease income, both of which were immaterial.

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2021 ($ in millions):


2022	$	232
2023	190
2024	160
2025	130
2026	105
Thereafter	400
Total operating lease payments	1,217
Less: imputed interest	(121)
Total operating lease liabilities	$	1,096

As of December 31, 2021, the Company had no additional significant operating or finance leases that had not yet commenced.