Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

14.     LEASES

The Company has entered into leases primarily for real estate, manufacturing equipment and vehicles with terms that range from 1 year to 10 years, excluding land use rights which generally extend over 90 years. These leases often include options to extend the term of the lease, most often for a period of 5 years. When it is reasonably certain that the option will be exercised, the impact of the option is included in the lease term for purposes of determining total future lease payments.

Costs associated with the Company’s operating lease expense were as follows:

	2022		2021
Operating lease expense	$	344	$	325
Short-term lease expense		25		16
Variable lease expense		26		26
Total lease expense	$	395	$	367

Supplemental information related to the Company’s operating leases was as follows:

	2022			2021
Operating cash flows – cash paid	$	375		$	373
New right-of-use assets	$	167		$	91
Weighted-average remaining lease term		8 years			9 years
Weighted-average discount rate		4.7	%		4.5	%

At December 31, 2022, the Company had commitments under operating leases requiring annual payments as follows:

	2022		2021
2023	$	310	$	300
2024		274		268
2025		240		234
2026		196		205
2027		175		176
2028 and thereafter		701		835
		1,896		2,018
Less: amount representing interest		332		338
Total lease liabilities	$	1,564	$	1,680
Current operating liabilities	$	276	$	274
Non-current operating lease liabilities		1,288		1,406
Total lease liabilities	$	1,564	$	1,680

As of December 31, 2022, the Company had additional operating leases, primarily for manufacturing facilities, that had not yet commenced with aggregate payments of $71 million. These operating leases will commence during 2023 and have lease terms of 1 to 15 years.

The Company’s finance leases were not material for any of the periods presented.