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LEASES
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
LEASES LEASES
We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option.
The following table details the composition of lease expense for 2021, 2020, and 2019:
($ in millions)202120202019
Operating lease cost
$149 $157 $185 
Variable lease cost51 60 113 
We recorded impairment charges of $116 million in 2020 and $99 million in 2019 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. Additionally, during the year ended 2019, we recorded an expense of $34 million in the “Restructuring and merger-related charges” caption of our Income Statements due to the impairment of a Legacy-Starwood office building accounted for as a finance lease.
The following table presents our future minimum lease payments at year-end 2021:
($ in millions)Operating LeasesFinance Leases
2022$191$13
202315014
202414114
202513314
202610915
Thereafter942122
Total minimum lease payments$1,666$192
Less: Amount representing interest41846
Present value of minimum lease payments$1,248$146
The following table presents the composition of our current and noncurrent lease liability at year-end 2021 and 2020:
($ in millions)December 31, 2021December 31, 2020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Current (1)
$150 $7 $147 $7 
Noncurrent (2)
1,098 139 823 146 
$1,248 $146 $970 $153 
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets.
(2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets.
The following table presents additional information about our lease obligations at year-end 2021 and 2020:
20212020
Operating leasesFinance leasesOperating leasesFinance leases
Weighted Average Remaining Lease Term (in years)14121013
Weighted Average Discount Rate4.2 %4.4 %4.6 %4.4 %
The following table presents supplemental cash flow information for 2021 and 2020:
($ in millions)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$181 $162 
Lease assets obtained in exchange for lease obligations:
Operating leases463 35 
LEASES LEASES
We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option.
The following table details the composition of lease expense for 2021, 2020, and 2019:
($ in millions)202120202019
Operating lease cost
$149 $157 $185 
Variable lease cost51 60 113 
We recorded impairment charges of $116 million in 2020 and $99 million in 2019 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. Additionally, during the year ended 2019, we recorded an expense of $34 million in the “Restructuring and merger-related charges” caption of our Income Statements due to the impairment of a Legacy-Starwood office building accounted for as a finance lease.
The following table presents our future minimum lease payments at year-end 2021:
($ in millions)Operating LeasesFinance Leases
2022$191$13
202315014
202414114
202513314
202610915
Thereafter942122
Total minimum lease payments$1,666$192
Less: Amount representing interest41846
Present value of minimum lease payments$1,248$146
The following table presents the composition of our current and noncurrent lease liability at year-end 2021 and 2020:
($ in millions)December 31, 2021December 31, 2020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Current (1)
$150 $7 $147 $7 
Noncurrent (2)
1,098 139 823 146 
$1,248 $146 $970 $153 
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets.
(2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets.
The following table presents additional information about our lease obligations at year-end 2021 and 2020:
20212020
Operating leasesFinance leasesOperating leasesFinance leases
Weighted Average Remaining Lease Term (in years)14121013
Weighted Average Discount Rate4.2 %4.4 %4.6 %4.4 %
The following table presents supplemental cash flow information for 2021 and 2020:
($ in millions)20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$181 $162 
Lease assets obtained in exchange for lease obligations:
Operating leases463 35