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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASES
As part of the Indigo Merger, the Company acquired $4 million of operating right of use assets and corresponding lease liabilities which were recognized as part of the Company’s acquisition accounting in the third quarter of 2021. The Company also acquired $2 million of operating right of use assets and corresponding lease liabilities related to the GEPH Merger of which $1 million had already commenced and was reflected on the balance sheet as of December 31, 2021. The GEPH Merger closed during the fourth quarter of 2021.
The Company’s variable lease costs are primarily comprised of variable operating charges incurred in connection with its headquarters lease. The variable lease costs are expected to continue throughout the lease term. There are currently no material residual value guarantees in the Company’s existing leases.
The components of lease costs are shown below:
For the years ended December 31,
(in millions)202120202019
Operating lease cost$54 $48 $45 
Short-term lease cost15 35 45 
Variable lease cost
Total lease cost$72 $86 $91 
As of December 31, 2021, the Company had operating leases of $13 million, related primarily to compressor leases, which have been executed but not yet commenced. These operating leases are planned to commence during 2022 with lease terms expiring through 2025. The Company’s existing operating leases do not contain any material restrictive covenants.
Supplemental cash flow information related to leases is set forth below:
For the years ended December 31,
(in millions)202120202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$53 $47 $47 
Right-of-use assets obtained in exchange for operating liabilities:
Operating leases$73 $48 $95 

Supplemental balance sheet information related to leases is as follows:
(in millions)December 31, 2021December 31, 2020
Right-of-use asset balance:
Operating leases$187 $163 
Lease liability balance:
Current operating leases$42 $42 
Long-term operating leases142 117 
Total operating leases$184 $159 
Weighted average remaining lease term: (years)
Operating leases5.55.6
Weighted average discount rate:
Operating leases6.77 %5.97 %
Maturity analysis of operating lease liabilities:
(in millions)December 31, 2021
2022$53 
202342 
202431 
202528 
202625 
Thereafter42 
Total undiscounted lease liability221 
Imputed interest(37)
Total discounted lease liability$184