Leases

3 Months Ended

Mar. 31, 2022

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 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.

As part of our integration of business operations from the Diamond Acquisition, we ceased utilizing one leased office space in the three months ended March 31, 2022, which the Company considered a triggering event for impairment analysis. We recognized impairment on the related right-of-use asset of $3 million in the three months ended March 31, 2022.

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 three months ended March 31, 2022 and 2021 was $7 million and $4 million, respectively. These amounts include $1 million of short-term and variable lease costs for the three months ended March 31, 2022 and 2021.

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


	Three Months Ended March 31,
($ in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	7	$	5
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		2		—

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


	March 31,			December 31,
	2022			2021
Weighted-average remaining lease term of operating leases (in years)		4			4
Weighted-average discount rate of operating leases		4.31	%		4.35	%

The future minimum lease payments under noncancelable operating leases, due in each of the next five years and thereafter as of March 31, 2022, are as follows:


($ in millions)	Operating Leases
Year
2022 (remaining)			20
2023			26
2024			18
2025			15
2026			9
Thereafter			6
Total future minimum lease payments		$	94
Less: imputed interest			(9	)
Present value of lease liabilities		$	85