Leases

6 Months Ended

Jun. 30, 2022

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 and one additional office space in the three months ended June 30, 2022, both of which the Company considered to be a triggering event for impairment analysis. We recognized impairment expenses on the related right-of-use assets of $3 million and $6 million in the three and six months ended June 30, 2022, respectively.

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 June 30, 2022 and 2021, was $8 million and $5 million, and $15 million and $9 million, for the six months ended June 30, 2022 and 2021, respectively. For the three months ended June 30, 2022 and 2021, these amounts included $2 million and $1 million, of short-term and variable lease costs, and for the six months ended June 30, 2022 and 2021, $2 million and $2 million, respectively.

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


	Six Months Ended June 30,
($ in millions)		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases		$	13	$	9
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:


	June 30, 2022		December 31, 2021
Weighted-average remaining lease term of operating leases (in years)	4		4
Weighted-average discount rate of operating leases	4.38	%	4.35	%

The future minimum lease payments under non-cancelable operating leases, due in each of the next five years and thereafter as of June 30, 2022, are as follows:


($ in millions)	Operating Leases
Year
2022 (remaining)	$	13
2023	26
2024	18
2025	15
2026	10
Thereafter	6
Total future minimum lease payments	$	88
Less: imputed interest	(8)
Present value of lease liabilities	$	80