Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

Lessee

The Company has operating and finance leases for various real estate (including the Macao and Singapore leasehold interests in land) and equipment. Certain of these lease agreements include rental payments adjusted periodically for inflation and rental payments based on usage. The Company’s leases include options to extend the lease term by one month to 10 years. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases recorded on the balance sheet consist of the following (excluding the Macao and Singapore leasehold interests in land assets; see "Note 8 — Leasehold Interests in Land, Net"):

		December 31,
Leases	Classification on the Balance Sheet	2022		2021
		(In millions)
Assets
Operating lease ROU assets	Other assets, net	$	23	$	24
Finance lease ROU assets	Property and equipment, net(1)	$	10	$	16
Liabilities
Current
Operating	Other accrued liabilities	$	13	$	14
Finance	Current maturities of long-term debt	$	8	$	10
Noncurrent
Operating	Other long-term liabilities	$	157	$	154
Finance	Long-term debt	$	13	$	15

____________________

(1)Finance lease ROU assets are recorded net of accumulated depreciation of $26 million and $21 million as of December 31, 2022 and 2021, respectively.

Other information related to lease term and discount rate is as follows:

	December 31,
	2022		2021
Weighted Average Remaining Lease Term
Operating leases	32.0 years		32.8 years
Finance leases	2.5 years		2.9 years
Weighted Average Discount Rate
Operating leases	4.9	%	4.9	%
Finance leases	4.9	%	2.6	%

The components of lease expense are as follows:

	December 31,
	2022		2021		2020
	(In millions)
Operating lease cost:
Amortization of leasehold interests in land	$	55	$	56	$	55
Operating lease cost	21		14		12
Short-term lease cost	4		1		1
Variable lease cost	2		2		2
Finance lease cost:
Amortization of ROU assets	5		8		9
Interest on lease liabilities	1		1		1
Total lease cost	$	88	$	82	$	80

As of December 31, 2022, the Company has short-term lease commitments of $38 million.

Supplemental cash flow information related to leases is as follows:

	December 31,
	2022		2021		2020
	(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	14	$	16	$	19
Financing cash flows for finance leases	$	4	$	5	$	3
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	8	$	10	$	10
Finance leases	$	1	$	9	$	22

Maturities of lease liabilities are summarized as follows:

	Operating Leases		Finance Leases
	(In millions)
Year ending December 31,
2023	$	14	$	9
2024	11		9
2025	8		3
2026	7		1
2027	7		—
Thereafter	304		—
Total future minimum lease payments	351		22
Less — amount representing interest	(181)		(1)
Present value of future minimum lease payments	170		21
Less — current lease obligations	(13)		(8)
Long-term lease obligations	$	157	$	13

Lessor

The Company leases space at several of its Integrated Resorts to various third parties as part of its mall operations that are recorded within mall revenues, as well as restaurant and retail space that are recorded within convention, retail and other revenues. These leases are non-cancelable operating leases with remaining lease periods that vary from one month to 20 years. The leases include minimum base rents with escalated contingent rent clauses.

Lease revenue consists of the following:

	Year Ended December 31,
	2022				2021				2020
	Mall		Other		Mall		Other		Mall		Other
	(In millions)
Minimum rents	$	484	$	1	$	505	$	1	$	523	$	1
Overage rents	78		—		115		—		39		—
Rent concessions(1)	(70)		—		(65)		—		(272)		—
Other(2)	—		—		6		—		—		—
Total overage rents and rent concessions	8		—		56		—		(233)		—
	$	492	$	1	$	561	$	1	$	290	$	1

___________________

(1)Rent concessions were provided to tenants during the years ended December 31, 2022, 2021 and 2020 as a result of the COVID-19 Pandemic and the impact on mall and other operations.

(2)Amount related to a grant provided by the Singapore government to lessors to support small and medium enterprises impacted by the COVID-19 Pandemic in connection with their rent obligations.

Future minimum rentals (excluding the escalated contingent rent clauses) on non-cancelable leases are as follows:

	Mall		Other
	(In millions)
Year ending December 31,
2023	$	442	$	1
2024	386		1
2025	289		—
2026	225		—
2027	188		—
Thereafter	340		—
Total minimum future rentals	$	1,870	$	2

The cost and accumulated depreciation of property and equipment the Company is leasing to third parties is as follows:

	December 31,
	2022		2021
	(In millions)
Property and equipment, at cost	$	1,554	$	1,536
Accumulated depreciation	(711)		(639)
Property and equipment, net	$	843	$	897