Operating lease ROU assets are included in "Operating lease right-of-use assets" while finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets.

Dow routinely leases sales and administrative offices, power plants, production facilities, warehouses and tanks for product storage, aircraft, motor vehicles, railcars, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses and the terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 51 years. See Note 1 for additional information on leases.

The components of lease cost for operating and finance leases for the years ended December 31, 2023, 2022 and 2021, were as follows:


Lease Cost	2023		2022		2021
In millions
Operating lease cost	$	426	$	397	$	494
Finance lease cost
Amortization of right-of-use assets - finance	106		105		76
Interest on lease liabilities - finance	34		32		27
Total finance lease cost	140		137		103
Short-term lease cost	255		255		238
Variable lease cost	929		611		381
Sublease income	(9)		(10)		(6)
Total lease cost	$	1,741	$	1,390	$	1,210


Other Lease Information	2023		2022		2021
In millions	2023		2022		2021

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	424	$	393	$	497
Operating cash flows for finance leases	$	34	$	32	$	27
Financing cash flows for finance leases	$	127	$	114	$	74
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 1	$	309	$	151	$	(25)
Finance leases 1	$	234	$	62	$	512

1.In 2023, $98 million of leased assets were reclassified from Operating leases to Finance leases due to an amendment that extended the term of the agreement. In 2021, $193 million of leased assets were reclassified from Operating leases to Finance leases due to an amendment that extended the term of the agreement.

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2023 and 2022:


Lease Position	Balance Sheet Classification	Dec 31, 2023		Dec 31, 2022
In millions
Assets
Operating lease assets	Operating lease right-of-use assets	$	1,320	$	1,227
Finance lease assets	Property	1,328		1,167
Finance lease amortization	Accumulated depreciation	(538)		(441)
Total lease assets		$	2,110	$	1,953
Liabilities
Current
Operating	Operating lease liabilities - current	$	329	$	287
Finance	Long-term debt due within one year	117		109
Noncurrent
Operating	Operating lease liabilities - noncurrent	1,032		997
Finance	Long-Term Debt	756		681
Total lease liabilities		$	2,234	$	2,074

In 2023, the Company amended an agreement to extend leases of certain assets. The amendment and related remeasurement resulted in a reclassification of $47 million from "Operating lease liabilities - noncurrent" to "Long-Term Debt" and $10 million from "Operating lease liabilities - current" to "Long-term debt due within one year." In addition to the reclassifications, the amendment increased "Long-Term Debt" by $61 million and decreased "Long-term debt due within one year" by $4 million.

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2023 and 2022 are provided below:


Lease Term and Discount Rate	Dec 31, 2023		Dec 31, 2022
Weighted-average remaining lease term
Operating leases	6.9 years		7.6 years
Finance leases	10.5 years		11.0 years
Weighted-average discount rate
Operating leases	4.82	%	4.49	%
Finance leases	4.84	%	4.29	%


Maturities of Lease Liabilities	Operating Leases		Finance Leases
In millions
2024	$	378	$	153
2025	287		144
2026	225		96
2027	174		88
2028	135		82
2029 and thereafter	421		545
Total future undiscounted lease payments	$	1,620	$	1,108
Less: Imputed interest	259		235
Total present value of lease liabilities	$	1,361	$	873

At December 31, 2023, Dow had additional leases of approximately $359 million, primarily for buildings and equipment, which had not yet commenced. These leases are expected to commence between 2024 and 2026, with lease terms of up to 20 years.

Dow provides guarantees related to certain leased assets, specifying the residual value that will be available to the lessor at lease termination through the sale of the assets to the lessee or third parties. The following table provides a summary of the final expiration, maximum future payments and recorded liability reflected in the consolidated balance sheets for residual value guarantees at December 31, 2023 and 2022. The lease agreements do not contain any material restrictive covenants.


Lease Guarantees	Dec 31, 2023					Dec 31, 2022
In millions	Final Expiration	Maximum Future Payments		Recorded Liability		Final Expiration	Maximum Future Payments		Recorded Liability
Residual value guarantees	2031	$	295	$	—	2031	$	258	$	—