Leases

12 Months Ended

Dec. 31, 2021

Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates. Leases, predominantly operating leases, are included in Other assets and Other liabilities on the Consolidated Balance Sheets. The lease agreements do not contain significant residual value guarantees, restrictions or covenants.

Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the secured borrowing rate, as most of the leases do not provide an implicit rate. The operating lease right of use asset was $272 million and $370 million and the operating lease liability was $363 million and $501 million at December 31, 2021 and 2020.

Total lease expense was $92 million, $110 million and $146 million for the years ended December 31, 2021, 2020 and 2019 which includes operating lease expense of $66 million, $84 million and $121 million, variable lease expense of $23 million, $22 million and $19 million and short term lease expense of $3 million, $4 million and $6 million. Cash paid for amounts included in operating lease liabilities was $65 million, $86 million and $117 million for year ended December 31, 2021, 2020 and 2019. Operating lease right of use assets obtained in exchange for lease obligations was $35 million, $40 million and $54 million for the years ended December 31, 2021, 2020 and 2019.

The table below presents the maturities of lease liabilities:


	Operating
As of December 31, 2021	Leases
(In millions)

2022	$	63
2023	58
2024	46
2025	38
2026	34
Thereafter	243
Total	482
Less: discount	119
Total lease liabilities	$	363

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating the operating lease asset and liability.


As of December 31, 2021

Weighted average remaining lease term	10.0 years
Weighted average discount rate	3.4	%