LEASING

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASING

12. LEASING

The following table presents our lease balances as of December 31:

In millions	Location in the Consolidated Balance Sheet	December 31, 2023		December 31, 2022
Assets
Operating lease assets	Operating lease assets	$	236	$	272
Finance lease assets	Property, plant and equipment, net	71		59
Accumulated Amortization of Finance lease assets	Property, plant and equipment, net	(57)		(49)
Total leased assets		$	250	$	282
Liabilities
Current
Operating lease liabilities	Other current liabilities	$	44	$	52
Finance lease liabilities	Other current liabilities	8		9
Noncurrent
Operating lease liabilities	Operating lease liabilities	254		286
Finance lease liabilities	Other liabilities	7		3
Total lease liabilities		$	313	$	350

The following table presents our lease costs for operating and finance leases:

In millions	For the year ended December 31, 2023		For the year ended December 31, 2022		For the year ended December 31, 2021
Operating lease cost	$	72	$	77	$	98
Finance lease cost
Amortization of leased assets	13		13		14
Interest on lease liabilities	1		1		1
Short-Term lease cost	—		3		3
Variable lease cost	29		23		21
Sublease income	(3)		—		—
Total lease cost	$	112	$	117	$	137

The following table presents the supplemental cash flow information:

In millions	For the year ended December 31, 2023		For the year ended December 31, 2022		For the year ended December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	76	$	82	$	102
Operating cash flows from finance leases	$	1	$	1	$	1
Financing cash flows from finance leases	$	14	$	13	$	14
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	$	16	$	4	$	107
Finance Leases	$	(1)	$	—	$	2

The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023:

In millions	Operating Leases		Finance Leases
2024	$	61	$	9
2025	46		6
2026	39		1
2027	39		—
2028	38		—
Thereafter	164		—
Total lease payments	387		16
Less: Amount representing interest	89		1
Present value of lease liabilities	$	298	$	15

As of December 31, 2023, all material operating leases had commenced.

The following table presents the weighted average remaining lease term and interest rates:

	December 31, 2023		December 31, 2022
Weighted average lease term:
Operating leases	8.3 years		8.8 years
Finance leases	2.2 years		1.2 years
Weighted average interest rates:
Operating leases	6.14	%	6.01	%
Finance leases	3.38	%	3.08	%

LEASING

12. LEASING

The following table presents our lease balances as of December 31:

In millions	Location in the Consolidated Balance Sheet	December 31, 2023		December 31, 2022
Assets
Operating lease assets	Operating lease assets	$	236	$	272
Finance lease assets	Property, plant and equipment, net	71		59
Accumulated Amortization of Finance lease assets	Property, plant and equipment, net	(57)		(49)
Total leased assets		$	250	$	282
Liabilities
Current
Operating lease liabilities	Other current liabilities	$	44	$	52
Finance lease liabilities	Other current liabilities	8		9
Noncurrent
Operating lease liabilities	Operating lease liabilities	254		286
Finance lease liabilities	Other liabilities	7		3
Total lease liabilities		$	313	$	350

The following table presents our lease costs for operating and finance leases:

In millions	For the year ended December 31, 2023		For the year ended December 31, 2022		For the year ended December 31, 2021
Operating lease cost	$	72	$	77	$	98
Finance lease cost
Amortization of leased assets	13		13		14
Interest on lease liabilities	1		1		1
Short-Term lease cost	—		3		3
Variable lease cost	29		23		21
Sublease income	(3)		—		—
Total lease cost	$	112	$	117	$	137

The following table presents the supplemental cash flow information:

In millions	For the year ended December 31, 2023		For the year ended December 31, 2022		For the year ended December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	76	$	82	$	102
Operating cash flows from finance leases	$	1	$	1	$	1
Financing cash flows from finance leases	$	14	$	13	$	14
Lease Assets Obtained in Exchange for Lease Obligations
Operating Leases	$	16	$	4	$	107
Finance Leases	$	(1)	$	—	$	2

The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Consolidated Balance Sheet as of December 31, 2023:

In millions	Operating Leases		Finance Leases
2024	$	61	$	9
2025	46		6
2026	39		1
2027	39		—
2028	38		—
Thereafter	164		—
Total lease payments	387		16
Less: Amount representing interest	89		1
Present value of lease liabilities	$	298	$	15

As of December 31, 2023, all material operating leases had commenced.

The following table presents the weighted average remaining lease term and interest rates:

	December 31, 2023		December 31, 2022
Weighted average lease term:
Operating leases	8.3 years		8.8 years
Finance leases	2.2 years		1.2 years
Weighted average interest rates:
Operating leases	6.14	%	6.01	%
Finance leases	3.38	%	3.08	%