LEASES

12 Months Ended

Dec. 31, 2022

NOTE 17: LEASES

The majority of our operating leases are related to our office and warehouse space, and the majority of our financing leases are related to vehicles and forklifts. Our leases have remaining lease terms of approximately 1 year to 25 years. Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments.

Lease Expense


DOLLAR AMOUNTS IN MILLIONS
	2022		2021		2020
Operating lease costs	$	21	$	20	$	21
Financing lease costs		7		9		12
Total lease costs	$	28	$	29	$	33

Supplemental Cash Flow Information


DOLLAR AMOUNTS IN MILLIONS
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	21	$	19	$	20
Financing cash flows for financing leases(1)	$	8	$	11	$	13
ROU assets obtained in exchange for new (modified) lease liabilities:
Operating leases	$	18	$	9	$	3
Financing leases	$	3	$	4	$	4

(1)

Interest expense related to financing leases was immaterial during 2022, 2021 and 2020.

Supplemental Balance Sheet Information Related to Leases


DOLLAR AMOUNTS IN MILLIONS
		DECEMBER 31, 2022		DECEMBER 31, 2021
LEASES	BALANCE SHEET CLASSIFICATION
Assets
Operating lease ROU assets	Other assets	$	102	$	101
Financing lease ROU assets	Property and equipment, net		9		13
Total leased assets		$	111	$	114
Liabilities
Current:
Operating lease liabilities	Accrued liabilities	$	17	$	17
Financing lease liabilities	Accrued liabilities		5		7
Noncurrent:
Operating lease liabilities	Other liabilities		91		90
Financing lease liabilities	Other liabilities		5		8
Total lease liabilities		$	118	$	122

Weighted Average Remaining Lease Term

Weighted Average Discount Rate



	DECEMBER 31, 2022			DECEMBER 31, 2021
Operating leases		3.9	%		4.1	%
Financing leases		2.9	%		2.9	%

Maturities of Lease Liabilities as of December 31, 2022


DOLLAR AMOUNTS IN MILLIONS
	OPERATING LEASES			FINANCING LEASES
2023	$	21		$	5
2024		15			2
2025		14			2
2026		14			1
2027		14			—
Thereafter		48			—
Total lease payments		126			10
Less: interest		(18	)		—
Total present value of lease liabilities	$	108		$	10

DECEMBER 31,
2022

DECEMBER 31,
2021

Operating leases

Financing leases