Leases

12 Months Ended

Dec. 31, 2022

12. Leases

Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one to seven years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one to five years for each option. The exercise of lease renewal options is generally at our sole discretion. All of our existing leases are classified as operating leases.

Components of our lease costs are as follows (amounts in millions):


	Years Ended December 31,
	2022		2021		2020
Operating leases
Operating lease costs	$	85	$	78	$	75
Variable lease costs	24		18		20

Supplemental information related to our operating leases is as follows (amounts in millions):


	Years Ended December 31,
	2022			2021			2020
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	93		$	75		$	77


ROU assets obtained in exchange for new lease obligations	47			64			80


	At December 31,
	2022			2021
Weighted Average Lease terms and discount rates
Remaining lease term	3.62 years			4.10 years
Discount rate	3.34		%	3.01		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at December 31, 2022, are as follows (amounts in millions):


For the years ending December 31,
2023	$	89
2024	71
2025	47
2026	26
2027	20
Thereafter	7
Total future lease payments	$	260
Less imputed interest	(15)
Total lease liabilities	$	245

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2022 and December 31, 2021, were as follows (amounts in millions):


	At December 31,
	2022		2021		Balance Sheet Classification
ROU assets	$	210	$	237	Other assets

Current lease liabilities	$	83	$	77	Accrued expenses and other current liabilities
Non-current lease liabilities	162		212		Other liabilities
	$	245	$	289	Total lease liabilities