LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

The 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	2023		2022		2021
Operating lease costs	$	21	$	18	$	9
Variable lease costs	40		28		20
Short-term lease costs	—		7		7
Finance lease cost
Amortization of right-of-use assets	3		4		3
Interest on lease liabilities	1		1		1
Total lease cost, net	$	65	$	58	$	40

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2023		2022
Assets
Operating lease assets	Right of use assets	$	58	$	35
Finance lease assets	Plants, properties, and equipment, net (a)	22		24
Total leased assets		$	80	$	59
Liabilities
Current
Operating	Other current liabilities	$	18	$	13
Finance	Notes payable and current maturities of long-term debt	2		3
Noncurrent
Operating	Other Liabilities	46		28
Finance	Long-term debt	14		14
Total lease liabilities		$	80	$	58

(a)Finance leases above are presented net of accumulated amortization of $16 million and $13 million as of December 31, 2023 and 2022, respectively.

LEASE TERM AND DISCOUNT RATE

	2023		2022
Weighted average remaining lease term (years)
Operating leases	5.3 years		5.8 years
Finance leases	9.6 years		7.5 years
Weighted average discount rate
Operating leases	4.94	%	2.84	%
Finance leases	3.85	%	3.90	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	21	$	21
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	5		5
Right of use assets obtained in exchange for lease liabilities
Operating leases	38		14
Finance leases	1		—

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2024	$	21	$	3	$	24
2025	15		2		17
2026	10		2		12
2027	8		2		10
2028	8		2		10
Thereafter	11		8		19
Total lease payments	73		19		92
Less: imputed interest	9		3		12
Present value of lease liabilities	$	64	$	16	$	80

LEASES

LEASES

The 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	2023		2022		2021
Operating lease costs	$	21	$	18	$	9
Variable lease costs	40		28		20
Short-term lease costs	—		7		7
Finance lease cost
Amortization of right-of-use assets	3		4		3
Interest on lease liabilities	1		1		1
Total lease cost, net	$	65	$	58	$	40

SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES

In millions	Classification	2023		2022
Assets
Operating lease assets	Right of use assets	$	58	$	35
Finance lease assets	Plants, properties, and equipment, net (a)	22		24
Total leased assets		$	80	$	59
Liabilities
Current
Operating	Other current liabilities	$	18	$	13
Finance	Notes payable and current maturities of long-term debt	2		3
Noncurrent
Operating	Other Liabilities	46		28
Finance	Long-term debt	14		14
Total lease liabilities		$	80	$	58

(a)Finance leases above are presented net of accumulated amortization of $16 million and $13 million as of December 31, 2023 and 2022, respectively.

LEASE TERM AND DISCOUNT RATE

	2023		2022
Weighted average remaining lease term (years)
Operating leases	5.3 years		5.8 years
Finance leases	9.6 years		7.5 years
Weighted average discount rate
Operating leases	4.94	%	2.84	%
Finance leases	3.85	%	3.90	%

SUPPLEMENTAL CASH FLOW INFORMATION RELATED TO LEASES

In millions	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows related to operating leases	$	21	$	21
Operating cash flows related to financing leases	1		1
Financing cash flows related to finance leases	5		5
Right of use assets obtained in exchange for lease liabilities
Operating leases	38		14
Finance leases	1		—

MATURITY OF LEASE LIABILITIES

In millions	Operating Leases		Financing Leases		Total
2024	$	21	$	3	$	24
2025	15		2		17
2026	10		2		12
2027	8		2		10
2028	8		2		10
Thereafter	11		8		19
Total lease payments	73		19		92
Less: imputed interest	9		3		12
Present value of lease liabilities	$	64	$	16	$	80