Leased Properties

12 Months Ended

Dec. 31, 2021

The Company primarily leases real estate for certain retail stores, branches, distribution centers, office space and land. The Company also leases equipment (primarily vehicles).

Most real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at the Company's discretion. The Company evaluates renewal options at lease inception and on an ongoing basis, and includes renewal options that it is reasonably certain to exercise in its expected lease terms when classifying leases and measuring lease liabilities. The Company elected a policy of not recording leases on its consolidated balance sheets when the leases have a term of 12 months or less and the Company is not reasonably certain to elect an option to purchase the leased asset. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

The table below presents the locations of the operating lease assets and liabilities on the consolidated balance sheets:


	Balance Sheet Line Item	December 31, 2021		December 31, 2020
Operating lease assets	Operating lease assets	$	1,053,689	$	1,038,877

Operating lease liabilities:
Current operating lease liabilities	Other current liabilities	$	280,575	$	270,739
Noncurrent operating lease liabilities	Operating lease liabilities	$	789,175	789,294
Total operating lease liabilities		$	1,069,750	$	1,060,033

The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term.

The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date.

The Company's weighted average remaining lease term and weighted average discount rate for operating leases are:


	December 31, 2021		December 31, 2020
Weighted average remaining lease term (in years)	5.19		5.35
Weighted average discount rate	2.03	%	2.47	%

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2021:


2022	$	302,748
2023	254,379
2024	185,047
2025	126,396
2026	83,215
Thereafter	171,914
Total undiscounted future minimum lease payments	1,123,699
Less: Difference between undiscounted lease payments and discounted operating lease liabilities	53,949
Total operating lease liabilities	$	1,069,750

Future minimum lease payments include $42,852 related to options to extend lease terms that are reasonably certain of being exercised.

The table below presents operating lease costs and supplemental cash flow information related to leases:


	2021		2020		2019
Operating lease costs	$	336,228	$	313,315	$	310,028
Cash paid for amounts included in the measurement of operating lease liabilities	$	340,243	$	323,336	$	311,170
Operating lease assets obtained in exchange for new operating lease liabilities	$	358,393	$	302,114	$	330,103

Operating lease costs are included within selling, administrative and other expenses on the consolidated statements of income. Short-term lease costs, variable lease costs and sublease income were not material for the periods presented. Cash paid for amounts included in the measurement of operating lease liabilities is included in operating activities in the consolidated statements of cash flows.