Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Note 5. Leases

We have operating leases primarily for our corporate offices, customer service centers and engineering and technology campuses. Our leases have remaining lease terms of less than one year to 13 years, some of which include options to extend the leases for up to five years. Renewal options that are reasonably certain to be exercised are included in the lease term. An incremental borrowing rate is used in determining the present value of lease payments unless an implicit rate is readily determinable. Incremental borrowing rates are determined based on our secured borrowing rating and the lease term.

The weighted-average remaining lease term and weighted-average discount rate related to operating leases is as follows:

	As of
	June 30,		December 31,
	2022		2021
Weighted-average remaining lease term (years)	8		9
Weighted-average discount rate	5.6	%	5.6	%

We recognized operating lease expense of $1 million for each of the three months ended June 30, 2022 and 2021 and $2 million for each of the six months ended June 30, 2022 and 2021. These expenses are included in Selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

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

	Six Months Ended
	June 30,
(In millions)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities	$	3	$	2
Leased assets obtained in exchange for new lease liabilities		—		6

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

	As of
	June 30,		December 31,
(In millions)	2022		2021
Operating lease right-of-use assets	$	15	$	22
Less lease incentives		(5)		(5)
Operating lease right-of-use assets, net	$	10	$	17
Other accrued liabilities	$	4	$	4
Operating lease liabilities		17		19
Total operating lease liabilities	$	21	$	23

The following table presents maturities of our operating lease liabilities as of June 30, 2022.

(In millions)
2022 (remainder)	$	3
2023		5
2024		3
2025		2
2026		2
2027		2
Thereafter		10
Total lease payments		27
Less imputed interest		(6)
Total	$	21

Sublease of Company Headquarters

It is the intent of the company to sublease our corporate headquarters facility in Memphis, Tennessee. As a result of us exiting the facility on June 27, 2022, with intent to sublease, we incurred a non-cash impairment charge of $11 million for the three and six months ended June 30, 2022.