LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

LEASESThe Company leases various real estate, including warehouses, office space and land. The Company also leases material handling equipment, vehicles and certain other equipment. The Company’s leases have a remaining lease term of up to 15 years.

COMPONENTS OF LEASE EXPENSE

In millions	2021		2020		2019
Operating lease costs	$	11	$	10	$	10
Variable lease costs	20		16		20
Short-term lease costs	7		1		2
Finance lease cost
Amortization of right-of-use assets	4		4		2
Interest on lease liabilities	1		1		1
Total lease cost, net	$	43	$	32	$	35

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2021		2020
Assets
Operating lease assets	Right of use assets	$	41	$	46
Finance lease assets	Plants, properties, and equipment, net (a)	29		33
Total leased assets		$	70	$	79
Liabilities
Current
Operating	Other current liabilities	$	16	$	14
Finance	Notes payable and current maturities of long-term debt	4		2
Noncurrent
Operating	Other Liabilities	26		32
Finance	Long-term debt	18		21
Total lease liabilities		$	64	$	69

(a)Finance leases are recorded net of accumulated amortization of $13 million and $10 million as of December 31, 2021 and 2020, respectively.

LEASE TERM AND DISCOUNT RATE

	2021		2020
Weighted average remaining lease term (years)
Operating leases	3.5 years		4.2 years
Finance leases	6.8 years		10.9 years
Weighted average discount rate
Operating leases	1.48	%	2.70	%
Finance leases	3.65	%	4.81	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	11	$	11
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	4		3
Right of use assets obtained in exchange for lease liabilities
Operating leases	32		16
Finance leases	1		4

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2022	$	17	$	4	$	21
2023	12		4		16
2024	7		2		9
2025	3		2		5
2026	2		2		4
Thereafter	3		13		16
Total lease payments	44		27		71
Less: imputed interest	2		5		7
Present value of lease liabilities	$	42	$	22	$	64

LEASES

LEASESThe Company leases various real estate, including warehouses, office space and land. The Company also leases material handling equipment, vehicles and certain other equipment. The Company’s leases have a remaining lease term of up to 15 years.

COMPONENTS OF LEASE EXPENSE

In millions	2021		2020		2019
Operating lease costs	$	11	$	10	$	10
Variable lease costs	20		16		20
Short-term lease costs	7		1		2
Finance lease cost
Amortization of right-of-use assets	4		4		2
Interest on lease liabilities	1		1		1
Total lease cost, net	$	43	$	32	$	35

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2021		2020
Assets
Operating lease assets	Right of use assets	$	41	$	46
Finance lease assets	Plants, properties, and equipment, net (a)	29		33
Total leased assets		$	70	$	79
Liabilities
Current
Operating	Other current liabilities	$	16	$	14
Finance	Notes payable and current maturities of long-term debt	4		2
Noncurrent
Operating	Other Liabilities	26		32
Finance	Long-term debt	18		21
Total lease liabilities		$	64	$	69

(a)Finance leases are recorded net of accumulated amortization of $13 million and $10 million as of December 31, 2021 and 2020, respectively.

LEASE TERM AND DISCOUNT RATE

	2021		2020
Weighted average remaining lease term (years)
Operating leases	3.5 years		4.2 years
Finance leases	6.8 years		10.9 years
Weighted average discount rate
Operating leases	1.48	%	2.70	%
Finance leases	3.65	%	4.81	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	11	$	11
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	4		3
Right of use assets obtained in exchange for lease liabilities
Operating leases	32		16
Finance leases	1		4

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2022	$	17	$	4	$	21
2023	12		4		16
2024	7		2		9
2025	3		2		5
2026	2		2		4
Thereafter	3		13		16
Total lease payments	44		27		71
Less: imputed interest	2		5		7
Present value of lease liabilities	$	42	$	22	$	64