Lease Commitments

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease Commitments

Lease Commitments

The company enters into leasing arrangements as a lessee; any lessor arrangements are not significant. Operating lease arrangements mainly involve land, bareboat charters, terminals, drill ships, drilling rigs, time chartered vessels, office buildings and warehouses, and exploration and production equipment. Finance leases primarily include facilities, vessels and office buildings.

Details of the right-of-use assets and lease liabilities for operating and finance leases, including the balance sheet presentation, are as follows:

	At December 31, 2023						At December 31, 2022
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Deferred charges and other assets	$	5,422		$	—		$	4,262		$	—
Properties, plant and equipment, net	—			583			—			392
Right-of-use assets*	$	5,422		$	583		$	4,262		$	392
Accrued Liabilities	$	1,538		$	—		$	1,111		$	—
Short-term Debt	—			60			—			45
Current lease liabilities	1,538			60			1,111			45
Deferred credits and other noncurrent obligations	3,696			—			2,920			—
Long-term Debt	—			574			—			403
Noncurrent lease liabilities	3,696			574			2,920			403
Total lease liabilities	$	5,234		$	634		$	4,031		$	448
Weighted-average remaining lease term (in years)	6.7			12.6			7.0			11.9
Weighted-average discount rate	3.3		%	4.5		%	1.9		%	4.1		%

* Includes non-cash additions of $2,556 and $233 in 2023, and $1,807 and $3 in 2022 for right-of-use assets obtained in exchange for new and modified lease liabilities for operating and finance leases, respectively.

Total lease costs consist of both amounts recognized in the Consolidated Statement of Income during the period and amounts capitalized as part of the cost of another asset. Total lease costs incurred for operating and finance leases were as follows:

	Year-ended December 31
	2023		2022		2021
Operating lease costs*	$	2,984	$	2,359	$	2,199
Finance lease costs	52		57		66
Total lease costs	$	3,036	$	2,416	$	2,265

* Includes variable and short-term lease costs.

Cash paid for amounts included in the measurement of lease liabilities was as follows:

	Year-ended December 31
	2023		2022		2021
Operating cash flows from operating leases	$	2,271	$	1,892	$	1,670
Investing cash flows from operating leases	713		467		398
Operating cash flows from finance leases	15		18		21
Financing cash flows from finance leases	42		44		193

At December 31, 2023, the estimated future undiscounted cash flows for operating and finance leases were as follows:

		At December 31, 2023
		Operating Leases		Finance Leases
Year	2024	$	1,673	$	84
	2025	1,153		79
	2026	734		76
	2027	544		68
	2028	396		66
	Thereafter	1,364		443
	Total	$	5,864	$	816
Less: Amounts representing interest		630		182
Total lease liabilities		$	5,234	$	634

Additionally, the company has $232 in future undiscounted cash flows for operating leases not yet commenced. These leases are primarily for drill ships, drilling rigs and storage tanks. For those leasing arrangements where the underlying asset is not yet constructed, the lessor is primarily involved in the design and construction of the asset.

Lease Commitments

Lease Commitments

The company enters into leasing arrangements as a lessee; any lessor arrangements are not significant. Operating lease arrangements mainly involve land, bareboat charters, terminals, drill ships, drilling rigs, time chartered vessels, office buildings and warehouses, and exploration and production equipment. Finance leases primarily include facilities, vessels and office buildings.

Details of the right-of-use assets and lease liabilities for operating and finance leases, including the balance sheet presentation, are as follows:

	At December 31, 2023						At December 31, 2022
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Deferred charges and other assets	$	5,422		$	—		$	4,262		$	—
Properties, plant and equipment, net	—			583			—			392
Right-of-use assets*	$	5,422		$	583		$	4,262		$	392
Accrued Liabilities	$	1,538		$	—		$	1,111		$	—
Short-term Debt	—			60			—			45
Current lease liabilities	1,538			60			1,111			45
Deferred credits and other noncurrent obligations	3,696			—			2,920			—
Long-term Debt	—			574			—			403
Noncurrent lease liabilities	3,696			574			2,920			403
Total lease liabilities	$	5,234		$	634		$	4,031		$	448
Weighted-average remaining lease term (in years)	6.7			12.6			7.0			11.9
Weighted-average discount rate	3.3		%	4.5		%	1.9		%	4.1		%

* Includes non-cash additions of $2,556 and $233 in 2023, and $1,807 and $3 in 2022 for right-of-use assets obtained in exchange for new and modified lease liabilities for operating and finance leases, respectively.

Total lease costs consist of both amounts recognized in the Consolidated Statement of Income during the period and amounts capitalized as part of the cost of another asset. Total lease costs incurred for operating and finance leases were as follows:

	Year-ended December 31
	2023		2022		2021
Operating lease costs*	$	2,984	$	2,359	$	2,199
Finance lease costs	52		57		66
Total lease costs	$	3,036	$	2,416	$	2,265

* Includes variable and short-term lease costs.

Cash paid for amounts included in the measurement of lease liabilities was as follows:

	Year-ended December 31
	2023		2022		2021
Operating cash flows from operating leases	$	2,271	$	1,892	$	1,670
Investing cash flows from operating leases	713		467		398
Operating cash flows from finance leases	15		18		21
Financing cash flows from finance leases	42		44		193

At December 31, 2023, the estimated future undiscounted cash flows for operating and finance leases were as follows:

		At December 31, 2023
		Operating Leases		Finance Leases
Year	2024	$	1,673	$	84
	2025	1,153		79
	2026	734		76
	2027	544		68
	2028	396		66
	Thereafter	1,364		443
	Total	$	5,864	$	816
Less: Amounts representing interest		630		182
Total lease liabilities		$	5,234	$	634

Additionally, the company has $232 in future undiscounted cash flows for operating leases not yet commenced. These leases are primarily for drill ships, drilling rigs and storage tanks. For those leasing arrangements where the underlying asset is not yet constructed, the lessor is primarily involved in the design and construction of the asset.