Leases

12 Months Ended

Dec. 31, 2023

We are obligated under operating leases primarily for vehicles, equipment, warehouses, and facilities that expire over the next ten years. These leases can contain renewal options. Because we are not reasonably certain to exercise these renewal options, or the renewal options are not solely within our discretion, the options are not considered in determining the lease term, and the associated potential option payments are excluded from expected minimum lease payments. Our leases generally do not include termination options for either party or restrictive financial or other covenants.

Our finance leases as of December 31, 2023 and 2022 were not material and are included in property and equipment, net, on our consolidated balance sheets.

The components of operating lease cost were as follows:


(in millions)	2023		2022		2021
Operating lease cost	$	457	$	410	$	341
Variable and short-term lease cost	42		40		38
Total operating lease cost	$	499	$	450	$	379

Supplemental disclosure of cash flow information related to operating leases were as follows:


(in millions)	2023		2022		2021
Cash paid for the amount used to measure the operating lease liabilities	$	445	$	367	$	288
Operating lease assets obtained in exchange for lease obligations	$	428	$	426	$	599
Net increase to operating lease ROU assets resulting from remeasurements of lease obligations	$	133	$	8	$	109

Amounts disclosed for ROU assets obtained in exchange for lease obligations include amounts added to the carrying amount of ROU assets resulting from lease modifications and reassessments, and new leases.

The assumptions used to value operating leases for the periods presented were as follows:


	December 31, 2023		December 31, 2022
Weighted-average remaining lease term	5.7 years		5.7 years
Weighted-average discount rate	7.77	%	6.76	%

As of December 31, 2023, we had entered into operating leases that have not commenced with future minimum lease payments of $355 million, that have not been recognized on our consolidated balance sheets. These leases have non-cancellable lease terms of 1 to 10 years.