Leases

12 Months Ended

Dec. 31, 2021

Leases

Leases

14. Leases

The components of lease expense were as follows:

	December 31,
($ in millions)	2021		2020
Operating lease expense	$	(94)	$	(75)
Financing lease expense		(2)		(1)
Variable lease expense		(20)		(16)
Sublease income		3		2
Net lease expense	$	(113)	$	(90)

Supplemental cash flow information related to leases was as follows:

	December 31,
($ in millions)	2021		2020
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash outflows for operating leases	$	(87)	$	(71)
Financing cash outflows for finance leases		(2)		(1)
ROU assets obtained in exchange for:
Operating lease obligations		182		97
Finance lease obligations		5		12

Supplemental balance sheet information related to leases was as follows:

		December 31,
($ in millions)	Balance Sheet Location	2021		2020
Operating leases:
Operating lease ROU asset	Other assets	$	420	$	302
Current operating lease liabilities	Other current liabilities		80		63
Noncurrent operating lease liabilities	Other liabilities		340		232
Finance leases:
Finance lease ROU assets, net	Property, plant and equipment, net		14		11
Current finance lease liabilities	Short-term debt and current portion of long-term debt		2		2
Noncurrent finance lease liabilities	Long-term debt		12		10

Weighted average remaining lease term and weighted average discount rate for the company’s leases were as follows:

	December 31,
	2021		2020
Weighted average remaining lease term in years:
Operating leases	10		11
Finance leases	7		7
Weighted average discount rate:
Operating leases	3.7	%	4.0	%
Finance leases	3.0	%	3.0	%

Maturities of lease liabilities are as follows:

($ in millions)	Operating Leases		Finance Leases
2022	$	85	$	3
2023		74		3
2024		59		3
2025		47		2
2026		36		1
Thereafter		197		4
Future value of lease liabilities		498		16
Less: Imputed interest		(78)		(2)
Present value of lease liabilities	$	420	$	14