Leases (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Condensed Consolidated Balance Sheet Information, Leases

Supplemental consolidated balance sheet information for leases at December 31, is as follows (in millions):


	Classification	2023		2022
Assets
Operating leases	Operating lease assets	$	515	$	578
Finance leases	Property, plant and equipment, net (1)	—		2
Total lease assets		$	515	$	580

Liabilities
Current
Operating leases	Other accrued liabilities	$	122	$	121
Finance leases	Short-term debt and current portion of long-term debt	—		1
Noncurrent
Operating leases	Operating lease liabilities	446		512
Finance leases	Long-term debt	—		1
Total lease liabilities		$	568	$	635

(1)Net of accumulated depreciation of $4 million and $18 million, respectively.

Schedule of Lease Costs, Terms, Discount Rates and Supplemental Cash Flow Information

Components of lease expense for the years ended December 31, are as follows (in millions):


	2023		2022		2021
Operating lease cost:
Operating lease cost (1)	$	172	$	172	$	166
Variable lease costs (2)	24		21		23
Finance lease cost
Amortization of leased assets	1		4		4

(1)Includes short-term leases, which are immaterial.

(2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales.

Remaining lease term and discount rates at December 31, are as follows:


	2023	2022
Weighted-average remaining lease term (years):
Operating leases	7	8
Finance leases	0	1
Weighted-average discount rate:
Operating leases	4.3%	4.6%
Finance leases	—%	0.8%

Supplemental cash flow information related to leases for the years ended December 31, are as follows (in millions):


	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	162	$	160	$	163

Financing cash flows from finance leases	—		3		4

Right of use assets obtained in exchange for lease liabilities:
Operating leases	46		135		144

Schedule of Maturities for Operating Lease Liabilities

Maturities of lease liabilities at December 31, 2023, are as follows (in millions):


	Operating Leases
2024	$	146
2025	116
2026	89
2027	68
2028	60
Thereafter	173
Total lease payments	652
Less: imputed interest	(84)
Present value of lease liabilities	$	568