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LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES LEASES
Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles, and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.
The components of lease expense are as follows:
(In millions)202220212020
Operating lease cost$179 $164 $184 
Finance lease cost:
Amortization of lease assets11 12 6 
Interest on lease liabilities1 2 1 
Short-term lease cost17 15 18 
Variable lease cost27 16 3 
Sublease income(1)(2)(2)
Total lease cost$234 $207 $210 
During 2022, Eaton entered into sale leaseback transactions primarily for certain office and distribution facilities and recorded gains of $81 million in Other expense (income) - net. The terms of the new operating leases ranged from 15 to 20 years. There were no sale leaseback transactions for the year ended December 31, 2021 and gains recorded on sale leaseback transactions were $9 million for the year ended December 31, 2020.
Supplemental cash flow information related to leases is as follows:
(In millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases$(159)$(158)$(144)
Operating cash outflows - interest payments on finance leases(2)(2)(1)
Financing cash outflows - payments on finance lease obligations(11)(11)(8)
Lease assets obtained in exchange for new lease obligations, including leases acquired:
Operating leases$245 $145 $144 
Finance leases10 14 16 
Supplemental balance sheet information related to leases is as follows:
December 31
(In millions)20222021
Operating Leases
Operating lease assets$570 $442 
Other current liabilities127 120 
Operating lease liabilities459 337 
Total operating lease liabilities$586 $457 
Finance Leases
Land and buildings$6 $6 
Machinery and equipment40 47 
Accumulated depreciation(20)(19)
Net property, plant and equipment$26 $34 
Current portion of long-term debt$10 $15 
Long-term debt18 23 
Total finance lease liabilities$28 $38 
December 31
20222021
Weighted-average remaining lease term
Operating leases7.6 years5.4 years
Finance leases4.9 years5.3 years
Weighted-average discount rate
Operating leases3.3 %2.6 %
Finance leases3.0 %3.3 %

Maturities of lease liabilities at December 31, 2022 are as follows:
(In millions)Operating LeasesFinance Leases
2023$145 $10 
2024118 7 
202586 4 
202669 3 
202754 2 
Thereafter209 4 
Total lease payments681 30 
Less imputed interest95 2 
Total present value of lease liabilities$586 $28 
LEASES LEASES
Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles, and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.
The components of lease expense are as follows:
(In millions)202220212020
Operating lease cost$179 $164 $184 
Finance lease cost:
Amortization of lease assets11 12 6 
Interest on lease liabilities1 2 1 
Short-term lease cost17 15 18 
Variable lease cost27 16 3 
Sublease income(1)(2)(2)
Total lease cost$234 $207 $210 
During 2022, Eaton entered into sale leaseback transactions primarily for certain office and distribution facilities and recorded gains of $81 million in Other expense (income) - net. The terms of the new operating leases ranged from 15 to 20 years. There were no sale leaseback transactions for the year ended December 31, 2021 and gains recorded on sale leaseback transactions were $9 million for the year ended December 31, 2020.
Supplemental cash flow information related to leases is as follows:
(In millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases$(159)$(158)$(144)
Operating cash outflows - interest payments on finance leases(2)(2)(1)
Financing cash outflows - payments on finance lease obligations(11)(11)(8)
Lease assets obtained in exchange for new lease obligations, including leases acquired:
Operating leases$245 $145 $144 
Finance leases10 14 16 
Supplemental balance sheet information related to leases is as follows:
December 31
(In millions)20222021
Operating Leases
Operating lease assets$570 $442 
Other current liabilities127 120 
Operating lease liabilities459 337 
Total operating lease liabilities$586 $457 
Finance Leases
Land and buildings$6 $6 
Machinery and equipment40 47 
Accumulated depreciation(20)(19)
Net property, plant and equipment$26 $34 
Current portion of long-term debt$10 $15 
Long-term debt18 23 
Total finance lease liabilities$28 $38 
December 31
20222021
Weighted-average remaining lease term
Operating leases7.6 years5.4 years
Finance leases4.9 years5.3 years
Weighted-average discount rate
Operating leases3.3 %2.6 %
Finance leases3.0 %3.3 %

Maturities of lease liabilities at December 31, 2022 are as follows:
(In millions)Operating LeasesFinance Leases
2023$145 $10 
2024118 7 
202586 4 
202669 3 
202754 2 
Thereafter209 4 
Total lease payments681 30 
Less imputed interest95 2 
Total present value of lease liabilities$586 $28