LEASES

12 Months Ended

Dec. 31, 2023

The Company leases certain properties, buildings and equipment (including branches, warehouses, DCs and office space) under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases that expire at various dates through 2037.

Information related to operating leases is as follows (in millions of dollars):


	As of December 31,
	2023		2022
Right-of-use assets
Operating lease right-of-use	$	429	$	367



Operating lease liabilities
Operating lease liability	71		68
Long-term operating lease liability	381		318
Total operating lease liabilities	$	452	$	386


	As of December 31,
	2023			2022
Weighted average remaining lease term	7 years			7 years
Weighted average incremental borrowing rate	2.19		%	1.46		%
Cash paid for operating leases	$	88		$	76
Right-of-use assets obtained in exchange for operating lease obligations	$	161		$	96

Rent expense was $102 million, $93 million and $74 million for 2023, 2022 and 2021, respectively. These amounts are net of sublease income of $2 million for 2023, 2022 and 2021.

The remaining maturity of existing lease liabilities as of December 31, 2023 are as follows (in millions of dollars):


Year	Operating Leases
2024	$	87
2025	87
2026	76
2027	66
2028	57
Thereafter	119
Total lease payments	492
Less interest	(40)
Present value of lease liabilities	$	452

As of December 31, 2023 and 2022, the Company's finance leases and service contracts with lease arrangements were not material. Finance leases are reported in Property, buildings and equipment – net, and as a short and long-term finance lease liability in Accrued expenses and Other non-current liabilities.