OPERATING LEASES

12 Months Ended

Dec. 31, 2021

OPERATING LEASES

At December 31, 2021, Huntington was obligated under non-cancelable leases for branch and office space. These leases are all classified as operating due to the amount of time such spaces are occupied relative to the underlying assets useful lives. Many of these leases contain renewal options, most of which are not included in measurement of the right-of-use asset as they are not considered reasonably certain of exercise (i.e., Huntington does not currently have a significant economic incentive to exercise these options). Some leases contain escalation clauses calling for rentals to be adjusted for increased real estate taxes and other operating expenses or proportionately adjusted for increases in the consumer or other price indices. Occasionally, Huntington will sublease the land and buildings for which it has obtained the right to use; substantially all of those sublease arrangements are classified as operating, with sublease income recognized on a straight-line basis over the contractual term of the arrangement.

Net lease assets and liabilities at December 31, 2021 and 2020 are as follows:


		At December 31,
(dollar amounts in millions)	Classification	2021		2020
Assets
Operating lease assets	Other assets	$	316	$	199



Liabilities






Lease liabilities	Other liabilities	$	441	$	220

Net lease cost for the years ended December 31, 2021 and 2020 are as follows:


		Year Ended December 31,
(dollar amounts in millions)	Classification	2021		2020
Operating lease cost	Net occupancy	$	104	$	50
Short-term lease cost	Net occupancy	3		1


Sublease income	Net occupancy	(2)		(2)
Net lease cost		$	105	$	49

Maturity of lease liabilities at December 31, 2021 are as follows:


(dollar amounts in millions)	Total
2022	$	64
2023	63
2024	52
2025	43
2026	36
Thereafter	263
Total lease payments	$	521
Less: Interest	(80)
Total lease liabilities	$	441

Additional supplemental information related to the Company’s operating leases as of December 31, 2021 and 2020 are as follows:


	Year Ended December 31,
(dollar amounts in millions)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities for operating cash flows	$	(50)		$	(53)




Right-of-use assets obtained in exchange for lease obligations for operating leases	174			23


Weighted-average remaining lease term (years) for operating leases	11.24			7.17



Weighted-average discount rate for operating leases	3.87		%	4.26		%