LEASES

12 Months Ended

Dec. 31, 2023

NOTE 16: LEASES

The majority of our operating leases are related to our office and warehouse space, and the majority of our financing leases are related to vehicles and forklifts. Our leases have remaining lease terms of approximately 1 year to 25 years. Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments.

Lease Expense


DOLLAR AMOUNTS IN MILLIONS
	2023		2022		2021
Operating lease costs	$	22	$	21	$	20
Financing lease costs		5		7		9
Total lease costs	$	27	$	28	$	29

Supplemental Cash Flow Information


DOLLAR AMOUNTS IN MILLIONS
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	22	$	21	$	19
Financing cash flows for financing leases(1)	$	6	$	8	$	11
ROU assets obtained in exchange for new (modified) lease liabilities:
Operating leases	$	14	$	18	$	9
Financing leases	$	6	$	3	$	4

(1)

Interest expense related to financing leases was immaterial during 2023, 2022 and 2021.

Supplemental Balance Sheet Information Related to Leases


DOLLAR AMOUNTS IN MILLIONS
		DECEMBER 31, 2023		DECEMBER 31, 2022
LEASES	BALANCE SHEET CLASSIFICATION
Assets
Operating lease ROU assets	Other assets	$	105	$	102
Financing lease ROU assets	Property and equipment, net		11		9
Total leased assets		$	116	$	111
Liabilities
Current:
Operating lease liabilities	Accrued liabilities	$	15	$	17
Financing lease liabilities	Accrued liabilities		4		5
Noncurrent:
Operating lease liabilities	Other liabilities		96		91
Financing lease liabilities	Other liabilities		7		5
Total lease liabilities		$	122	$	118

Weighted Average Remaining Lease Term

Weighted Average Discount Rate



	DECEMBER 31, 2023			DECEMBER 31, 2022
Operating leases		4.2	%		3.9	%
Financing leases		4.8	%		2.9	%

Maturities of Lease Liabilities as of December 31, 2023


DOLLAR AMOUNTS IN MILLIONS
	OPERATING LEASES			FINANCING LEASES
2024	$	20		$	4
2025		19			3
2026		19			2
2027		16			2
2028		14			1
Thereafter		41			—
Total lease payments		129			12
Less: interest		(18	)		(1	)
Total present value of lease liabilities	$	111		$	11

DECEMBER 31,
2023

DECEMBER 31,
2022

Operating leases

Financing leases