Leases

9 Months Ended

Sep. 30, 2021

Note 15: Leases

We lease sales centers, office space and equipment under operating leases, some of which we acquired as part of the Diamond Acquisition. Our leases expire at various dates from 2021 through 2030, with varying renewal and termination options. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

We recognize rent expense on leases with both contingent and non-contingent lease payment terms. Rent associated with non-contingent lease payments are recognized on a straight-line basis over the lease term. Rent expense for all operating leases was $6 million and $5 million for the three months ended September 30, 2021 and 2020, respectively, and $15 million for the nine months ended September 30, 2021 and 2020. These amounts include less than $1 million and $1 million of short-term and variable lease costs for the three months ended September 30, 2021 and 2020, respectively, and $1 million and $2 million for the nine months ended September 30, 2021 and 2020, respectively.

Supplemental cash flow information related to operating leases was as follows:


	Nine months ended September 30,
($ in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	15	$	14
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		35		4

Supplemental balance sheet information related to operating leases was as follows:


	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term of operating leases (in years)		4.6		5.4
Weighted-average discount rate of operating leases		4.35	%		4.95	%

The future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of September 30, 2021, are as follows:


($ in millions)	Operating Leases
Year
2021 (remaining)		7
2022		25
2023		24
2024		17
2025		15
Thereafter		15
Total future minimum lease payments	$	103
Less: imputed interest		(10	)
Present value of lease liabilities	$	93