Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2022 and 2021 were as follows:

	For the Three Months Ended March 31,
	Con Edison		CECONY
(Millions of Dollars)	2022	2021	2022	2021
Operating lease cost	$21	$22	$16	$17
Operating lease cash flows	$9	$8	$4	$4

As of March 31, 2022 and December 31, 2021, assets recorded as finance leases were $2 million for Con Edison and $1 million for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $4 million and $2 million, respectively.

For the three months ended March 31, 2022 and 2021, finance lease costs and cash flows for Con Edison and CECONY were immaterial.

Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $44 million and $1 million, respectively, for the three months ended March 31, 2022. Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $16 million and $1 million, respectively, for the three months ended March 31, 2021.

Other information related to leases for Con Edison and CECONY at March 31, 2022 and December 31, 2021 were as follows:

	Con Edison		CECONY
	2022	2021	2022	2021
Weighted Average Remaining Lease Term:
Operating leases	18.2 years	18.5 years	11.9 years	12.1 years
Finance leases	7.2 years	7.1 years	3.0 years	3.1 years
Weighted Average Discount Rate:
Operating leases	4.3%	4.3%	3.5%	3.5%
Finance leases	1.8%	1.8%	1.1%	1.1%

Future minimum lease payments under non-cancellable leases at March 31, 2022 were as follows:

(Millions of Dollars)	Con Edison		CECONY
Year Ending March 31,	Operating Leases	Finance Leases	Operating Leases	Finance Leases
2023	$84	$—	$60	$—
2024	77	—	59	—
2025	78	1	59	1
2026	78	—	60	—
2027	76	—	60	—
All years thereafter	871	1	394	—
Total future minimum lease payments	$1,264	$2	$692	$1
Less: imputed interest	(428)	—	(135)	—
Total	$836	$2	$557	$1
Reported as of March 31, 2022
Operating lease liabilities (current)	$120	$—	$92	$—
Operating lease liabilities (noncurrent)	716	—	465	—
Other noncurrent liabilities	—	2	—	1
Total	$836	$2	$557	$1

At March 31, 2022, the Companies had an additional operating lease agreement that had not yet commenced, for a solar electric facility under construction by the Clean Energy Businesses, for which the present value of the lease payments is $6 million. This lease is expected to commence within one year, with a lease term of approximately 45 years.

The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the three months ended March 31, 2022 and 2021.

Leases

Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2022 and 2021 were as follows:

	For the Three Months Ended March 31,
	Con Edison		CECONY
(Millions of Dollars)	2022	2021	2022	2021
Operating lease cost	$21	$22	$16	$17
Operating lease cash flows	$9	$8	$4	$4

As of March 31, 2022 and December 31, 2021, assets recorded as finance leases were $2 million for Con Edison and $1 million for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $4 million and $2 million, respectively.

For the three months ended March 31, 2022 and 2021, finance lease costs and cash flows for Con Edison and CECONY were immaterial.

Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $44 million and $1 million, respectively, for the three months ended March 31, 2022. Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $16 million and $1 million, respectively, for the three months ended March 31, 2021.

Other information related to leases for Con Edison and CECONY at March 31, 2022 and December 31, 2021 were as follows:

	Con Edison		CECONY
	2022	2021	2022	2021
Weighted Average Remaining Lease Term:
Operating leases	18.2 years	18.5 years	11.9 years	12.1 years
Finance leases	7.2 years	7.1 years	3.0 years	3.1 years
Weighted Average Discount Rate:
Operating leases	4.3%	4.3%	3.5%	3.5%
Finance leases	1.8%	1.8%	1.1%	1.1%

Future minimum lease payments under non-cancellable leases at March 31, 2022 were as follows:

(Millions of Dollars)	Con Edison		CECONY
Year Ending March 31,	Operating Leases	Finance Leases	Operating Leases	Finance Leases
2023	$84	$—	$60	$—
2024	77	—	59	—
2025	78	1	59	1
2026	78	—	60	—
2027	76	—	60	—
All years thereafter	871	1	394	—
Total future minimum lease payments	$1,264	$2	$692	$1
Less: imputed interest	(428)	—	(135)	—
Total	$836	$2	$557	$1
Reported as of March 31, 2022
Operating lease liabilities (current)	$120	$—	$92	$—
Operating lease liabilities (noncurrent)	716	—	465	—
Other noncurrent liabilities	—	2	—	1
Total	$836	$2	$557	$1

At March 31, 2022, the Companies had an additional operating lease agreement that had not yet commenced, for a solar electric facility under construction by the Clean Energy Businesses, for which the present value of the lease payments is $6 million. This lease is expected to commence within one year, with a lease term of approximately 45 years.

The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the three months ended March 31, 2022 and 2021.