LEASES

12 Months Ended

Dec. 31, 2023

Our operating leases consist primarily of properties and equipment for our administrative, manufacturing and R&D activities. Some of our leases include options to extend the terms for up to 15 years and some include options to terminate the lease within one year after the lease commencement date. As of December 31, 2023 and 2022, we did not have material finance leases. Operating lease expense, including variable costs and short-term leases, was $165 million, $162 million and $156 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes balance sheet and other information related to our operating leases:


		December 31,
(in millions, except weighted average amounts)	Classification	2023			2022
Right-of-use assets, net	Other long-term assets	$	581		$	505
Lease liabilities – current	Other current liabilities	$	125		$	111
Lease liabilities – noncurrent	Other long-term obligations	$	546		$	467
Weighted average remaining lease term		7.5 years			8.1 years
Weighted average discount rate		3.22		%	2.80		%

The following table summarizes other supplemental information related to our operating leases:


	Year Ended December 31,
(in millions)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities	$	88	$	98
Right-of-use assets obtained in exchange for lease liabilities(1)	$	214	$	97

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(1) These represent noncash activities and were therefore not included on our Consolidated Statements of Cash Flows.

The following table summarizes a maturity analysis of our operating lease liabilities showing the aggregate lease payments as of December 31, 2023:


(in millions)	Amount
2024	$	143
2025	123
2026	95
2027	76
2028	70
Thereafter	257
Total undiscounted lease payments	763
Less: imputed interest	92
Total discounted lease payments	$	671