LEASES

12 Months Ended

Dec. 31, 2022

A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, information technology equipment, and automobiles. The majority of the Company's leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities in the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt in the Consolidated Balance Sheet.

A portion of the Company's real estate leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of the Company's automobile leases are considered variable. The variable lease payments for such automobiles leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments was incurred.


	Years Ended December 31,
	2022			2021
Operating lease cost		$	224		$	228
Variable lease cost		8			14
Short-term lease cost		18			15
Finance lease cost:
Amortization of right-of-use assets		72			65
Interest on lease liability		21			24
Total finance lease cost		93			89
Total lease cost		$	343		$	346

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	225		$	215
Operating cash flows for finance leases		21			24
Financing cash flows for finance leases		79			67
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$	251		$	350
Finance leases		61			32

Supplemental balance sheet information related to leases was as follows:


	December 31,
	2022				2021
Operating leases:
Other assets		$	881			$	947
Accrued liabilities		192				185
Other liabilities		775				847
Total operating lease liabilities		$	967			$	1,032
Finance leases:
Property, plant and equipment		$	383			$	325
Accumulated depreciation		(161)				(177)
Property, plant and equipment—net		$	222			$	148
Current maturities of long-term debt		$	77			$	57
Long-term debt		145				99
Total finance lease liabilities		$	222			$	156
Weighted average remaining lease term:
Operating leases	8 years				9 years
Finance leases	4 years				3 years
Weighted average discount rate:
Operating leases		2.1		%		2.3		%
Finance leases		7.8		%		11.0		%

As of December 31, 2022, maturities of lease liabilities were as follows:


	Operating Leases			Finance Leases
2023		$	208		$	94
2024		176			81
2025		139			37
2026		115			15
2027		88			12
Thereafter		354			18
Total lease payments		1,080			257
Less—interest		(113)			(35)
Total		$	967		$	222