LEASES

12 Months Ended

Dec. 31, 2022

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	2022		2021		2020
Operating lease costs	$	18	$	9	$	8
Variable lease costs	28		20		16
Short-term lease costs	7		7		1
Finance lease cost
Amortization of right-of-use assets	4		3		2
Interest on lease liabilities	1		1		1
Total lease cost, net	$	58	$	40	$	28

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2022		2021
Assets
Operating lease assets	Right of use assets	$	35	$	40
Finance lease assets	Plants, properties, and equipment, net (a)	24		27
Total leased assets		$	59	$	67
Liabilities
Current
Operating	Other current liabilities	$	13	$	15
Finance	Notes payable and current maturities of long-term debt	3		3
Noncurrent
Operating	Other Liabilities	28		25
Finance	Long-term debt	14		17
Total lease liabilities		$	58	$	60

(a)Finance leases are recorded net of accumulated amortization of $13 million and $11 million as of December 31, 2022 and 2021, respectively.

LEASE TERM AND DISCOUNT RATE

	2022		2021
Weighted average remaining lease term (years)
Operating leases	5.8 years		3.5 years
Finance leases	7.5 years		7.4 years
Weighted average discount rate
Operating leases	2.84	%	1.30	%
Finance leases	3.90	%	3.31	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	21	$	11
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	5		3
Right of use assets obtained in exchange for lease liabilities
Operating leases	14		32
Finance leases	—		1

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2023	$	14	$	3	$	17
2024	10		2		12
2025	5		2		7
2026	3		2		5
2027	2		2		4
Thereafter	11		11		22
Total lease payments	45		22		67
Less: imputed interest	4		5		9
Present value of lease liabilities	$	41	$	17	$	58

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	2022		2021		2020
Operating lease costs	$	18	$	9	$	8
Variable lease costs	28		20		16
Short-term lease costs	7		7		1
Finance lease cost
Amortization of right-of-use assets	4		3		2
Interest on lease liabilities	1		1		1
Total lease cost, net	$	58	$	40	$	28

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2022		2021
Assets
Operating lease assets	Right of use assets	$	35	$	40
Finance lease assets	Plants, properties, and equipment, net (a)	24		27
Total leased assets		$	59	$	67
Liabilities
Current
Operating	Other current liabilities	$	13	$	15
Finance	Notes payable and current maturities of long-term debt	3		3
Noncurrent
Operating	Other Liabilities	28		25
Finance	Long-term debt	14		17
Total lease liabilities		$	58	$	60

(a)Finance leases are recorded net of accumulated amortization of $13 million and $11 million as of December 31, 2022 and 2021, respectively.

LEASE TERM AND DISCOUNT RATE

	2022		2021
Weighted average remaining lease term (years)
Operating leases	5.8 years		3.5 years
Finance leases	7.5 years		7.4 years
Weighted average discount rate
Operating leases	2.84	%	1.30	%
Finance leases	3.90	%	3.31	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	21	$	11
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	5		3
Right of use assets obtained in exchange for lease liabilities
Operating leases	14		32
Finance leases	—		1

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2023	$	14	$	3	$	17
2024	10		2		12
2025	5		2		7
2026	3		2		5
2027	2		2		4
Thereafter	11		11		22
Total lease payments	45		22		67
Less: imputed interest	4		5		9
Present value of lease liabilities	$	41	$	17	$	58