Leasing Arrangements (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Components of Net Lease Cost, and Supplemental Disclosure for Statement of Cash Flows related to Operating and Finance Leases

The components of net lease cost were as follows:

		(dollars in millions)
Years Ended December 31,	Classification	2022		2021		2020
Operating lease cost (1)	Cost of services Selling, general and administrative expense	$	5,345	$	5,248	$	5,016
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	224		259		309
Interest on lease liabilities	Interest expense	36		34		39
Short-term lease cost (1)	Cost of services Selling, general and administrative expense	23		21		22
Variable lease cost (1)	Cost of services Selling, general and administrative expense	294		307		295
Sublease income	Service revenues and other	(199)		(193)		(167)
Total net lease cost		$	5,723	$	5,676	$	5,514

(1) All operating lease costs, including short-term and variable lease costs, are split between Cost of services and Selling, general and administrative expense in the consolidated statements of income based on the use of the facility or equipment that the rent is being paid on. See Note 1 for additional information. Variable lease costs represent payments that are dependent on a rate or index, or on usage of the asset.

Supplemental disclosure for the statements of cash flows related to operating and finance leases were as follows:

	(dollars in millions)
Years Ended December 31,	2022		2021		2020
Cash Flows from Operating Activities
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	(4,490)	$	(4,658)	$	(4,813)
Operating cash flows for finance leases	(36)		(34)		(39)
Cash Flows from Financing Activities
Financing cash flows for finance leases	(449)		(394)		(394)
Supplemental lease cash flow disclosures
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	2,392		9,778		3,800
Right-of-use assets obtained in exchange for new finance lease liabilities	832		461		562

Supplemental Disclosure for Balance Sheet related to Finance Leases

Supplemental disclosures for the balance sheet related to finance leases were as follows:

	(dollars in millions)
At December 31,	2022		2021
Assets
Property, plant and equipment, net	$	1,138	$	1,046
Liabilities
Debt maturing within one year	$	565	$	400
Long-term debt	1,167		925
Total Finance lease liabilities	$	1,732	$	1,325

Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate related to Leases

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

At December 31,	2022		2021
Weighted-average remaining lease term (years)
Operating leases	8		9
Finance leases	4		4
Weighted-average discount rate
Operating leases	3.2	%	3.1	%
Finance leases	2.5	%	2.2	%

Lessee, Operating Lease, Liability, Maturity

The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2022:

			(dollars in millions)
Years	Operating Leases		Finance Leases
2023	$	4,591	$	586
2024	4,318		518
2025	3,929		388
2026	3,571		196
2027	3,253		90
Thereafter	10,160		67
Total lease payments	29,822		1,845
Less interest	4,130		113
Present value of lease liabilities	25,692		1,732
Less current obligation	4,134		565
Long-term obligation at December 31, 2022	$	21,558	$	1,167

Finance Lease, Liability, Maturity

The following table presents the maturity analysis of operating and finance lease liabilities as of December 31, 2022:

			(dollars in millions)
Years	Operating Leases		Finance Leases
2023	$	4,591	$	586
2024	4,318		518
2025	3,929		388
2026	3,571		196
2027	3,253		90
Thereafter	10,160		67
Total lease payments	29,822		1,845
Less interest	4,130		113
Present value of lease liabilities	25,692		1,732
Less current obligation	4,134		565
Long-term obligation at December 31, 2022	$	21,558	$	1,167