Leases (Tables)

12 Months Ended

Dec. 31, 2021

Under ASC 842, the components of lease cost are shown below. Lease costs for operating leases are recognized on a straight line basis and are reflected in the income statement based on the leased asset’s use. Lease costs for finance leases are reflected in depreciation and amortization and in net interest and other financial costs.


(In millions)	2021		2020		2019
Finance lease cost:
Amortization of right of use assets	$	78	$	72	$	59
Interest on lease liabilities	31		35		37
Operating lease cost	581		658		660
Variable lease cost	69		60		68
Short-term lease cost	446		649		780
Total lease cost	$	1,205	$	1,474	$	1,604

Supplemental Balance Sheet Disclosures

Supplemental balance sheet data related to leases were as follows:


	December 31,
(In millions)	2021			2020
Operating leases
Assets
Right of use assets	$	1,372		$	1,521
Liabilities
Operating lease liabilities	$	438		$	497
Long-term operating lease liabilities	927			1,014
Total operating lease liabilities	$	1,365		$	1,511

Weighted average remaining lease term (in years)	5.0			4.8
Weighted average discount rate	3.11		%	3.68		%

Finance leases
Assets
Property, plant and equipment, gross	$	815		$	819
Less accumulated depreciation	336			272
Property, plant and equipment, net	$	479		$	547
Liabilities
Debt due within one year	$	73		$	69
Long-term debt	525			576
Total finance lease liabilities	$	598		$	645

Weighted average remaining lease term (in years)	10.3			10.7
Weighted average discount rate	5.04		%	5.33		%

Operating & Finance Leases, Liability, Maturity

As of December 31, 2021, maturities of lease liabilities for operating lease obligations and finance lease obligations having initial or remaining non-cancellable lease terms in excess of one year are as follows:


(In millions)	Operating		Finance
2022	$	473	$	101
2023	320		102
2024	239		86
2025	171		77
2026	104		75
2027 and thereafter	174		327
Gross lease payments	1,481		768
Less: imputed interest	116		170
Total lease liabilities	$	1,365	$	598

Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity

The following is a schedule of minimum future rentals on the non-cancelable operating leases as of December 31, 2021:


(In millions)
2022	$	213
2023	207
2024	204
2025	171
2026	142
2027 and thereafter	1,299
Total minimum future rentals	$	2,236

Schedule of Property Subject to or Available for Operating Lease

The following schedule summarizes our investment in assets held under operating lease by major classes as of December 31, 2021 and 2020:


	December 31,
(In millions)	2021		2020
Gathering and transportation	$	991	$	990
Processing and fractionation	867		867
Terminals	128		128
Land, building and other	15		15
Property, plant and equipment	2,001		2,000
Less accumulated depreciation	523		430
Total property, plant and equipment, net	$	1,478	$	1,570