LEASES (Notes)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lessee, Operating And Finance Leases

LEASES

Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets.

The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 21 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants.

The components of lease cost for operating and finance leases for the years ended December 31, 2023, 2022 and 2021 were as follows:

Lease Cost	2023		2022		2021
In millions
Operating lease cost	$	25	$	25	$	23
Short-term lease cost	41		31		28
Variable lease cost	25		19		39
Amortization of right-of-use assets - finance	3		3		3
Total lease cost	$	94	$	78	$	93

The following table provides supplemental cash flow and other information related to leases:

Other Lease Information	2023		2022		2021
In millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	24	$	25	$	23
Financing cash flows for finance leases	$	3	$	3	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	12	$	2	$	15
Finance leases	$	2	$	1	$	5

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2023 and 2022:

Lease Position	Balance Sheet Classification	Dec 31, 2023		Dec 31, 2022
In millions
Assets
Operating lease assets	Operating lease right-of-use assets	$	85	$	107
Finance lease assets	Property	14		20
Finance lease amortization	Accumulated depreciation	(12)		(13)
Total lease assets		$	87	$	114
Liabilities
Current
Operating	Operating lease liabilities - current	$	17	$	21
Finance	Long-term debt due within one year	1		3
Noncurrent
Operating	Operating lease liabilities - noncurrent	68		87
Finance	Long-Term Debt	2		4
Total lease liabilities		$	88	$	115

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2023 and 2022 are provided below:

Lease Term and Discount Rate	Dec 31, 2023		Dec 31, 2022
Weighted-average remaining lease term
Operating leases	6.7 years		6.3 years
Finance leases	3.8 years		2.5 years
Weighted-average discount rate
Operating leases	3.42	%	3.43	%
Finance leases	4.38	%	2.33	%

The following table provides the maturities of lease liabilities at December 31, 2023:

Maturities of Lease Liabilities	Dec 31, 2023
In millions	Operating Leases		Finance Leases
2024	$	19	$	1
2025	18		1
2026	17		1
2027	11		—
2028	10		—
2029 and thereafter	20		—
Total future undiscounted lease payments	$	95	$	3
Less: Imputed interest	10		—
Total present value of lease liabilities	$	85	$	3

At December 31, 2023, the Corporation had no additional leases for assets that have not yet commenced.