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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The components of lease expense are as follows:
(Millions)202120202019
Operating lease cost$319 $348 $308 
Finance lease cost:
Amortization of assets15 21 20 
Interest on lease liabilities2 1 2 
Variable lease cost127 101 93 
Total net lease cost$463 $471 $423 
Short-term lease cost and income related to sub-lease activity is immaterial for the Company.
Supplemental balance sheet information related to leases is as follows:
(Millions unless noted)Location on face of Balance Sheet20212020
Operating leases:
Operating lease right of use assetsOperating lease right of use assets$858 $864 
Current operating lease liabilitiesOperating lease liabilities - current263 256 
Noncurrent operating lease liabilitiesOperating lease liabilities591 609 
Total operating lease liabilities854 865 
Finance leases:
Property and equipment, at costProperty, plant and equipment223 225 
Accumulated amortizationProperty, plant and equipment (accumulated depreciation)(117)(106)
Property and equipment, net106 119 
Current obligations of finance leasesOther current liabilities7 22 
Finance leases, net of current obligationsOther liabilities93 93 
Total finance lease liabilities$100 $115 
Weighted average remaining lease term (in years):
Operating leases5.55.6
Finance leases6.67.6
Weighted average discount rate:
Operating leases1.8 %2.4 %
Finance leases3.3 %3.5 %
Supplemental cash flow and other information related to leases is as follows:
(Millions)202120202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$317 $326 $309 
Operating cash flows from finance leases2 1 2 
Financing cash flows from finance leases19 58 18 
Right of use assets obtained in exchange for lease liabilities:
Operating leases342 250 326 
Finance leases3 18 61 
Sale leased-back activity in 2021 was not material. In the first quarter of 2020, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $10 million. In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $9 million. During 2019, the Company sold and leased-back an office location and a manufacturing site resulting in a combined gain of $82 million.
Maturities of lease liabilities were as follows:
December 31, 2021
(Millions)Finance LeasesOperating Leases
2022$20 $280 
202319 203 
202417 134 
202511 80 
20269 45 
After 2026
31 151 
Total107 893 
Less: Amounts representing interest7 39 
Present value of future minimum lease payments100 854 
Less: Current obligations7 263 
Long-term obligations$93 $591 
As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of approximately $18 million. These commitments pertain to 3M’s right of use of certain buildings.
Leases Leases
The components of lease expense are as follows:
(Millions)202120202019
Operating lease cost$319 $348 $308 
Finance lease cost:
Amortization of assets15 21 20 
Interest on lease liabilities2 1 2 
Variable lease cost127 101 93 
Total net lease cost$463 $471 $423 
Short-term lease cost and income related to sub-lease activity is immaterial for the Company.
Supplemental balance sheet information related to leases is as follows:
(Millions unless noted)Location on face of Balance Sheet20212020
Operating leases:
Operating lease right of use assetsOperating lease right of use assets$858 $864 
Current operating lease liabilitiesOperating lease liabilities - current263 256 
Noncurrent operating lease liabilitiesOperating lease liabilities591 609 
Total operating lease liabilities854 865 
Finance leases:
Property and equipment, at costProperty, plant and equipment223 225 
Accumulated amortizationProperty, plant and equipment (accumulated depreciation)(117)(106)
Property and equipment, net106 119 
Current obligations of finance leasesOther current liabilities7 22 
Finance leases, net of current obligationsOther liabilities93 93 
Total finance lease liabilities$100 $115 
Weighted average remaining lease term (in years):
Operating leases5.55.6
Finance leases6.67.6
Weighted average discount rate:
Operating leases1.8 %2.4 %
Finance leases3.3 %3.5 %
Supplemental cash flow and other information related to leases is as follows:
(Millions)202120202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$317 $326 $309 
Operating cash flows from finance leases2 1 2 
Financing cash flows from finance leases19 58 18 
Right of use assets obtained in exchange for lease liabilities:
Operating leases342 250 326 
Finance leases3 18 61 
Sale leased-back activity in 2021 was not material. In the first quarter of 2020, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $10 million. In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $9 million. During 2019, the Company sold and leased-back an office location and a manufacturing site resulting in a combined gain of $82 million.
Maturities of lease liabilities were as follows:
December 31, 2021
(Millions)Finance LeasesOperating Leases
2022$20 $280 
202319 203 
202417 134 
202511 80 
20269 45 
After 2026
31 151 
Total107 893 
Less: Amounts representing interest7 39 
Present value of future minimum lease payments100 854 
Less: Current obligations7 263 
Long-term obligations$93 $591 
As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of approximately $18 million. These commitments pertain to 3M’s right of use of certain buildings.