Present value of minimum lease payments

  
The components of lease revenue for the years ended December 31, 2021, 2020 and 2019 were:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) | 2021 |  | 2020 |  | 2019 |
| Sales-type lease revenue | $ | 27  |  |  | $ | 38  |  |  | $ | 35  |  |
| Operating lease revenue | 136  |  |  | 84  |  |  | 61  |  |
| Variable lease revenue | 79  |  |  | 80  |  |  | 85  |  |
| Total lease revenue | $ | 242  |  |  | $ | 202  |  |  | $ | 181  |  |

The components of our net investment in sales-type leases as of December 31, 2021 and 2020 were:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) | 2021 |  | 2020 |
| Minimum lease payments | $ | 111  |  |  | $ | 122  |  |
| Unguaranteed residual values | 4  |  |  | 12  |  |
| Net investment in leases  | $ | 115  |  |  | $ | 134  |  |

Our net investment in sales-type leases is classified as follows in the accompanying consolidated balance sheets:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (in millions) | December 31, 2021 |  | December 31, 2020 |
| Accounts receivable, net | $ | 40  |  |  | $ | 39  |  |
| Other non-current assets | 75  |  |  | 95  |  |
| Total | $ | 115  |  |  | $ | 134  |  |

Our net investment in sales-type leases was $115 million as of December 31, 2021, of which $13 million originated in 2017 and prior, $24 million in 2018, $24 million in 2019, $32 million in 2020 and $22 million in 2021.Maturities of sales-type and operating leases as of December 31, 2021 were:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| (in millions) | Sales-type Leases | Operating Leases |
| 2022 | $ | 43  |  | $ | 87  |  |
| 2023 | 32  |  | 79  |  |
| 2024 | 22  |  | 75  |  |
| 2025 | 12  |  | 60  |  |
| 2026 | 5  |  | 11  |  |
| Thereafter | 1  |  | 2  |  |
| Total minimum lease payments | 115  |  | $ | 314  |  |
| Less: imputed interest | (4) |  |  |
| Present value of minimum lease payments | $ | 111  |  |  |

NOTE 7 

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| --- | --- | --- |
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| COMMITMENTS AND CONTINGENCIES  |

Refer to Note 2 for information regarding our unfunded contingent payments associated with collaborative and other arrangements.IndemnificationsDuring the normal course of business, we make indemnities, commitments and guarantees pursuant to which we may be required to make payments related to specific transactions. Indemnifications include: (i) intellectual property indemnities to customers in connection with the use, sales or license of products and services; (ii) indemnities to customers in connection with losses incurred while performing services on their premises; (iii) indemnities to vendors and service providers pertaining to claims based on negligence or willful misconduct; (iv) indemnities involving the representations and warranties in certain contracts; and (v) contractual indemnities for our directors and certain of our executive officers for services provided to or at the request of us. In addition, under our Amended and Restated Certificate of Incorporation, and consistent with Delaware General Corporation Law, we have agreed 74
