Leases

12 Months Ended

Dec. 31, 2023

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 for up to 30 years, and some leases include options to terminate 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, 2023 and 2022. 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):


		2023		2022			2021
Consolidated Statements of Earnings
Fixed operating lease expense (a)		$	207	$	199		$	201
Variable operating lease expense		67		60			46
Total operating lease expense		$	274	$	259		$	247

Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities		$	214	$	219		$	197
ROU assets obtained in exchange for operating lease obligations		182		188			272

Consolidated Balance Sheets				December 31, 2023			December 31, 2022
Lease Assets and Liabilities	Classification
Operating lease ROU assets	Other long-term assets			$	1,052		$	884

Operating lease liabilities - current	Accrued expenses and other liabilities			$	180		$	167
Operating lease liabilities - long-term	Other long-term liabilities			954			772
Total operating lease liabilities				$	1,134		$	939

Weighted average remaining lease term				9 years			8 years
Weighted average discount rate				3.4		%	2.7		%

(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, 2023 ($ in millions):


2024	$	204
2025	184
2026	159
2027	124
2028	108
Thereafter	539
Total operating lease payments	1,318
Less: imputed interest	(184)
Total operating lease liabilities	$	1,134

As of December 31, 2023, the Company had no additional significant operating or finance leases that had not yet commenced.