Lessee

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lessee

Lessee

Operating Leases

We have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to twelve years and a variety of renewal and/or termination options.

The components of lease expense are as follows:

	Three Months Ended March 31,
	2023		2022
Operating lease expense	$	23	$	25
Short-term lease expense	4		4
Variable lease expense(1)	13		12
Sublease income	(1)		(2)
Total Lease expense	$	39	$	39

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

As of March 31, 2023, we had no operating leases that had not yet commenced.

Operating lease ROU assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:

	March 31, 2023		December 31, 2022
Other long-term assets	$	201	$	215
Accrued expenses and other current liabilities	$	61	$	68
Other long-term liabilities	153		161
Total Operating lease liabilities	$	214	$	229

The assets and the liabilities related to our finance leases were immaterial for all periods presented.