Leases

12 Months Ended

Dec. 31, 2021

Note 17: 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 2022 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 for the year ended December 31, 2021, 2020 and 2019 was as follows:


	Year Ended December 31,
($ in millions)	2021(1)		2020(1)		2019(1)
Minimum rentals	$	20	$	19	$	19
Contingent rentals		2		1		2
	$	22	$	20	$	21

(1)

These amounts include short term and variable rent of $2 million, $5 million, and $3 million for the years December 31, 2021, 2020 and 2019, respectively.

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


	Year Ended December 31,
($ in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	21	$	18
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		35		5

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


	December 31,
	2021			2020
Weighted-average remaining lease term of operating leases (in years)		4		5.4
Weighted-average discount rate of operating leases		4.35	%		4.95	%

The future minimum rent payments under noncancelable operating leases, due in each of the next five years and thereafter as of December 31, 2021, are as follows:


($ in millions)	Operating Leases
Year
2022			25
2023			24
2024			17
2025			15
2026			9
Thereafter			6
Total future minimum lease payments		$	96
Less: imputed interest			(9	)
Present value of lease liabilities		$	87