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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Leases Our lease obligations consist primarily of real estate office space. Certain leases contain escalation clauses and renewal options, and generally our leases have no residual value guarantees or material covenants. We exclude from our balance sheet leases with a term equal to one year or less, and do not separate non-lease components from our real estate leases.
Rent expense under operating leases was $37 million, $39 million and $37 million in 2023, 2022 and 2021. Variable lease costs were insignificant for 2023, 2022 and 2021. At December 31, 2023 and 2022, operating lease right-of-use assets, included in other assets, were $100 million and $117 million and operating lease liabilities, included in other liabilities, were $116 million and $138 million. Operating lease right-of-use assets obtained in exchange for lease obligations were an insignificant amount, $17 million, and an insignificant amount in 2023, 2022 and 2021. At December 31, 2023, our undiscounted future lease obligations related to operating leases having initial terms in excess of one year were $27 million, $24 million, $25 million, $20 million, $17 million, and $17 million for 2024, 2025, 2026, 2027, 2028 and thereafter, with imputed interest of $13 million at December 31, 2023. The weighted average discount rate was 4.3% and 4.2%, and the weighted average remaining lease term was 5.3 years and 6.0 years at December 31, 2023 and 2022. Payments for operating leases included in net cash provided by operating activities were $49 million in 2023 and $45 million in both 2022 and 2021. We have no lease agreements that have not yet commenced at December 31, 2023.
Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents, restricted cash, derivative financial instruments and retail finance receivables. Our cash equivalents and restricted cash represent investments in highly rated securities placed through various major financial institutions. The counterparties to our derivative financial instruments are various major financial institutions.
Borrowers located in Texas accounted for 12.8% of the retail finance receivables portfolio at December 31, 2023. No other state or country accounted for more than 10% of the retail finance receivables portfolio.
At December 31, 2023, substantially all of our commercial finance receivables represent loans to GM-franchised dealers and their affiliates.
Legal Proceedings We are subject to various pending and potential legal and regulatory proceedings in the ordinary course of business, including litigation, arbitration, claims, investigations, examinations, subpoenas and enforcement proceedings. Some litigation against us could take the form of class actions. The outcome of these proceedings is inherently uncertain, and thus we cannot confidently predict how or when proceedings will be resolved. An adverse outcome in one or more of these proceedings could result in substantial damages, settlements, fines, penalties, diminished income or reputational harm.
In accordance with the current accounting standards for loss contingencies, we establish reserves for legal matters when it is probable that a loss associated with the matter has been incurred and the amount of the loss can be reasonably estimated. The actual costs of resolving legal matters may be higher or lower than any amounts reserved for these matters. At December 31, 2023, we estimated our reasonably possible legal exposure for unfavorable outcomes is approximately $148 million, and we have accrued $135 million.
Other Administrative Tax Matters We accrue non-income tax liabilities for contingencies when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time.
In evaluating indirect tax matters, we take into consideration factors such as our historical experience with matters of similar nature, specific facts and circumstances, and the likelihood of prevailing. We reevaluate and update our accruals as matters progress over time, where there is a reasonable possibility that losses exceeding amounts already recognized may be incurred. Our estimate of the additional range of loss is up to $184 million at December 31, 2023.