XML 31 R16.htm IDEA: XBRL DOCUMENT v3.22.4
LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES LEASES
We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option.
The following table details the composition of lease expense for 2022, 2021, and 2020:
($ in millions)202220212020
Operating lease cost
$165 $149 $157 
Variable lease cost90 51 60 
We recorded impairment charges of $116 million in 2020 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends.
The following table presents our future minimum lease payments at year-end 2022:
($ in millions)Operating LeasesFinance Leases
2023$157$14
202415414
202514814
202611915
20278515
Thereafter844107
Total minimum lease payments$1,507$179
Less: Amount representing interest36740
Present value of minimum lease payments$1,140$139
The following table presents the composition of our current and noncurrent lease liability at year-end 2022 and 2021:
($ in millions)December 31, 2022December 31, 2021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Current (1)
$106 $8 $150 $7 
Noncurrent (2)
1,034 131 1,098 139 
$1,140 $139 $1,248 $146 
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets.
(2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets.
The following table presents additional information about our lease obligations at year-end 2022 and 2021:
20222021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted Average Remaining Lease Term (in years)13111412
Weighted Average Discount Rate4.4 %4.3 %4.2 %4.4 %
The following table presents supplemental cash flow information for 2022 and 2021:
($ in millions)20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$191 $181 
Lease assets obtained in exchange for lease obligations:
Operating leases75 463 
LEASES LEASES
We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option.
The following table details the composition of lease expense for 2022, 2021, and 2020:
($ in millions)202220212020
Operating lease cost
$165 $149 $157 
Variable lease cost90 51 60 
We recorded impairment charges of $116 million in 2020 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends.
The following table presents our future minimum lease payments at year-end 2022:
($ in millions)Operating LeasesFinance Leases
2023$157$14
202415414
202514814
202611915
20278515
Thereafter844107
Total minimum lease payments$1,507$179
Less: Amount representing interest36740
Present value of minimum lease payments$1,140$139
The following table presents the composition of our current and noncurrent lease liability at year-end 2022 and 2021:
($ in millions)December 31, 2022December 31, 2021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Current (1)
$106 $8 $150 $7 
Noncurrent (2)
1,034 131 1,098 139 
$1,140 $139 $1,248 $146 
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets.
(2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets.
The following table presents additional information about our lease obligations at year-end 2022 and 2021:
20222021
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted Average Remaining Lease Term (in years)13111412
Weighted Average Discount Rate4.4 %4.3 %4.2 %4.4 %
The following table presents supplemental cash flow information for 2022 and 2021:
($ in millions)20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases$191 $181 
Lease assets obtained in exchange for lease obligations:
Operating leases75 463