Leases

12 Months Ended

Dec. 31, 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 2023 through 2034, 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 certain offices 2022, which the Company considered to be triggering events for impairment analysis. We recognized impairments on the related right-of-use assets of $6 million during the year ended December 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 year ended December 31, 2022, 2021 and 2020 was as follows:


	Year Ended December 31,
($ in millions)	2022(1)		2021(1)		2020(1)
Minimum rentals	$	34	$	20	$	19
Contingent rentals	4		2		1
Total	$	38	$	22	$	20

(1)These amounts include short term and variable rent of $4 million, $2 million, and $5 million for the years December 31, 2022, 2021 and 2020, respectively.

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


	Year Ended December 31,
($ in millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	27	$	21
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	25		35

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


	December 31,
	2022			2021
Weighted-average remaining lease term of operating leases (in years)	6		4
Weighted-average discount rate of operating leases	4.57	%		4.35	%

The future minimum rent payments under non-cancelable operating leases as of December 31, 2022 are as follows:


($ in millions)	Operating Leases
Year
2023	$	26
2024	19
2025	16
2026	13
2027	7
Thereafter	28
Total future minimum lease payments	109
Less: imputed interest	(15)
Present value of lease liabilities	$	94