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Leases (Tables)

12 Months Ended

Dec. 31, 2023

The components of lease expense for the years ended December 31, 2023, 2022 and 2021 were as follows:


($ in millions)	Classification in the Consolidated Statement of Income	2023	2022	2021
Operating lease cost	Cost of sales, exclusive of depreciation and amortization	$46	$43	$41
Operating lease cost	Selling, general and administrative	220	216	219
Total operating lease cost		$266	$259	$260
Finance lease cost:
Amortization of right-of-use assets	Depreciation	$2	$2	$2
Interest on lease liabilities	Interest expense	1	1	1
Total finance lease cost		$3	$3	$3
Total lease cost		$269	$262	$263

Total operating lease cost for the years ended December 31, 2023, 2022 and 2021 is inclusive of the following:

The lease amounts included in


($ in millions)	Classification on the Consolidated Balance Sheet	2023	2022
Assets:
Operating	Operating lease right-of-use assets	$832	$829
Finance(1)	Property, plant, and equipment, net	14	15
Total leased assets		$846	$844
Liabilities:
Current
Operating	Current portion of operating lease liabilities	$194	$183
Finance	Short-term debt and current portion of long-term debt	2	3
Noncurrent
Operating	Operating lease liabilities	$622	$636
Finance	Long-term debt	6	7
Total lease liabilities		$824	$829

(1)Net of accumulated depreciation of $15 million and $14 million as of December 31, 2023 and 2022, respectively.

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as follows:


($ in millions)	2023	2022	2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$224	$218	$224
Operating cash flows paid for finance leases	$1	$1	$1
Financing cash flows paid for finance leases	$3	$2	$3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$174	$161	$253
Finance leases	$1	$3	$—

Lease terms and discount rates as of December 31, 2023, 2022 and 2021 were as follows:


	2023		2022		2021
Weighted-average remaining lease term (in years)
Operating leases	6.2		6.7		7.1
Finance leases	9.5		9.0		6.4
Weighted-average discount rate
Operating leases	3.2	%	2.6	%	2.1	%
Finance leases	5.9	%	5.7	%	5.8	%

As of December 31, 2023, maturities of lease liabilities were as follows:

As of December 31, 2023, maturities of lease liabilities were as follows: