Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Balance Sheet Information Related to Operating & Finance Leases

Operating and finance lease obligations at December 31 included in the Consolidated Balance Sheet were as follows:

	Operating Leases				Finance Leases
	2021		2020		2021		2020
	(In millions)
Right-of-use assets — net (a)	$	352	$	426	$	144	$	168
Lease obligations:
Current	$	70	$	63	$	19	$	18
Long-term	394		478		200		220
Total lease obligations	$	464	$	541	$	219	$	238

(a)At December 31, 2021, finance lease ROU assets had a cost of $212 million (2020: $212 million) and accumulated amortization of $68 million (2020: $44 million).

Maturity Profile of Lease Obligations

Maturities of lease obligations at December 31, 2021 were as follows:

	Operating Leases		Finance Leases
	(In millions)
2022	$	87	$	36
2023	75		36
2024	69		36
2025	64		36
2026	49		31
Remaining years	219		145
Total lease payments	563		320
Less: Imputed interest	(99)		(101)
Total lease obligations	$	464	$	219

Term & Rate Information Related to Operating & Finance Leases

The following information relates to the operating and finance leases at December 31:

	Operating Leases		Finance Leases
	2021	2020	2021	2020
Weighted average remaining lease term	9.9 years	10.3 years	11.8 years	12.8 years
Range of remaining lease terms	0.1 - 14.5 years	0.1 - 15.5 years	11.8 years	12.8 years
Weighted average discount rate	4.1%	4.0%	7.9%	7.9%

Components of Lease Costs

The components of lease costs for the years ended December 31, 2021 and 2020 were as follows:

	2021		2020
	(In millions)
Operating lease cost	$	88	$	200
Finance lease cost:
Amortization of leased assets	24		31
Interest on lease obligations	18		20
Short-term lease cost (a)	137		199
Variable lease cost (b)	21		38
Sublease income (c)	(17)		(15)
Total lease cost	$	271	$	473

(a)Short-term lease cost is primarily attributable to equipment used in global exploration, development, production, and crude oil marketing activities.  Future short-term lease costs will vary based on activity levels of our operated assets.

(b)Variable lease costs for drilling rigs result from differences in the minimum rate and the actual usage of the ROU asset during the lease period.  Variable lease costs for logistical assets result from differences in stated monthly rates and total charges reflecting the actual usage of the ROU asset during the lease period.  Variable lease costs for our office leases represent common area maintenance charges which have not been separated from lease components.

(c)We sublease certain of our office space to third parties under our head lease.

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020 were as follows:

	Operating Leases				Finance Leases
	2021		2020		2021		2020
	(In millions)
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows (a)	$	87	$	218	$	18	$	20
Financing cash flows (a)	—		—		18		17
Noncash transactions:
Leased assets recognized for new lease obligations incurred	12		51		—		—
Changes in leased assets and lease obligations due to lease modifications (b)	29		123		—		—

(a)Amounts represent gross lease payments before any recovery from partners.

(b)In 2020, primarily related to negotiated extensions of an office lease and offshore drilling rig leases.