2027 and thereafter

[Table of Contents](#i40ca88ef65884b508d3f9e19d0380e84_7)NOTE 17 - LEASESThe lease cost for operating leases were as follows: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended June 30,  |  Six Months Ended June 30,  |  |
| In millions | 2022 | 2021 | 2022 | 2021 |  |  |
| Operating lease costs | $ | 28  |  | $ | 26  |  | $ | 55  |  | $ | 53  |  |  |  |

  
Operating cash flows from operating leases were $56 million and $52 million for the six months ended June 30, 2022 and 2021, respectively.   
New operating lease assets and liabilities entered into during the six months ended June 30, 2022 and 2021 were $59 million and $23 million, respectively. Supplemental balance sheet information related to leases was as follows: 

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| In millions | June 30, 2022 | December 31, 2021 |
| Operating Leases |   |  |
| Operating lease right-of-use assets 1 | $ | 430  |  | $ | 422  |  |
| Current operating lease liabilities 2 | 90  |  | 92  |  |
| Noncurrent operating lease liabilities 3 | 343  |  | 337  |  |
| Total operating lease liabilities | $ | 433  |  | $ | 429  |  |

1.Included in "Deferred charges and other assets" in the Condensed Consolidated Balance Sheet.2.Included in "Accrued and other current liabilities" in the Condensed Consolidated Balance Sheet.3.Included in "Other noncurrent obligations" in the Condensed Consolidated Balance Sheet.  
Operating lease right-of-use ("ROU") assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide the lessor’s implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments. 

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| Lease Term and Discount Rate for Operating Leases | June 30, 2022 | December 31, 2021 |
| Weighted-average remaining lease term (years) | 8.32 | 8.50 |
| Weighted average discount rate | 2.14  | % | 2.01  | % |

  
Maturities of lease liabilities were as follows: 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Maturity of Lease Liabilities at June 30, 2022 | Operating Leases |
| In millions |
| Remainder of 2022 | $ | 55  |  |
| 2023 | 90  |  |
| 2024 | 76  |  |
| 2025 | 54  |  |
| 2026 | 40  |  |
| 2027 and thereafter | 168  |  |
| Total lease payments | $ | 483  |  |
| Less: Interest | 50  |  |
| Present value of lease liabilities | $ | 433  |  |

The Company has leases in which it is the lessor, with the largest being a result of the N&B transaction. In connection with the N&B Transaction, DuPont entered into leasing agreements with IFF, whereby DuPont is leasing certain properties, including office spaces and R&D laboratories to IFF. These leases are classified as operating leases and lessor income and related expenses are not significant to the Company's Condensed Consolidated Balance Sheet or interim Consolidated Statement of Operations. Lease agreements where the Company is the lessor have final expirations through 2036.  
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