Leases

6 Months Ended

Jun. 30, 2024

NOTE 9 Leases

Substantially all of the Company's operating lease right-of-use assets and operating lease liabilities represent real estate leases for office space used to conduct the Company's business that expire on various dates through 2041. Leases generally contain renewal options and escalation clauses based upon increases in the lessors’ operating expenses and other charges. The Company anticipates that most of these leases will be renewed or replaced upon expiration, although not necessarily for the same amount of space.

The balances and classification of operating lease right-of-use assets and operating lease liabilities within the Condensed Consolidated Balance Sheets is as follows:


(in millions)		June 30, 2024		December 31, 2023
Assets:
Operating lease right-of-use assets	Operating lease assets	$	192	$	199
Total assets			192		199
Liabilities:
Current operating lease liabilities	Accrued expenses and other liabilities		45		45
Non-current operating lease liabilities	Operating lease liabilities		180		179
Total liabilities		$	225	$	224

As of June 30, 2024, the Company has entered into future lease agreements expected to commence later in 2024 consisting of undiscounted lease liabilities of $1 million.

The components of lease cost for operating leases were as follows:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024			2023
Operating leases:
Lease cost	$	14	$	14	$	28		$	29
Variable lease cost		1		1		2			2
Operating lease cost		15		15		30			31
Sublease income		—		—		(1	)		(1	)
Total lease cost net	$	15	$	15	$	29		$	30

The weighted average remaining lease term and the weighted average discount rate for operating leases as of June 30, 2024 were:


Weighted average remaining lease term in years	6.14
Weighted average discount rate	3.66	%

Maturities of the operating lease liabilities by fiscal year at June 30, 2024 for the Company's operating leases are as follows:


(in millions)	Operating leases
2024 (Remainder)	$	24
2025		53
2026		43
2027		35
2028		27
Thereafter		69
Total undiscounted lease payments		251
Less: imputed interest		26
Present value of lease payments	$	225

Supplemental cash flow information for operating leases is as follows:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2024		2023		2024		2023
Cash paid for amounts included in measurement of liabilities
Operating cash flows from operating leases	$	15	$	15	$	30	$	30
Right-of-use assets obtained in exchange for new operating liabilities	$	13	$	6	$	25	$	10