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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.
The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows:
($ in millions)Classification in the Consolidated Statement of Income202220212020
Operating lease costCost of sales, exclusive of depreciation and amortization$43 $41 $34 
Operating lease costSelling, general and administrative216 219 206 
Total operating lease cost$259 $260 $240 
Finance lease cost:
Amortization of right-of-use assetsDepreciation$2 $2 $2 
Interest on lease liabilitiesInterest expense1 1 1 
Total finance lease cost$3 $3 $3 
Total lease cost$262 $263 $243 
Total operating lease cost for the years ended December 31, 2022, 2021 and 2020 is inclusive of the following:
($ in millions)202220212020
Variable lease costs$18 $18 $17 
Short-term lease costs$22 $16 $8 
The lease amounts included in the consolidated balance sheet as of December 31, 2022 and 2021 were as follows:
($ in millions)Classification on the Consolidated Balance Sheet20222021
Assets:
OperatingOperating lease right-of-use assets$829 $891 
Finance(1)
Property, plant, and equipment, net15 13 
Total leased assets$844 $904 
Liabilities:
Current
OperatingCurrent portion of operating lease liabilities$183 $192 
FinanceShort-term debt and current portion of long-term debt3 3 
Noncurrent
OperatingOperating lease liabilities$636 $693 
FinanceLong-term debt7 7 
Total lease liabilities$829 $895 
(1)Net of accumulated depreciation of $14 million and $13 million as of December 31, 2022 and 2021, respectively.
Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows:
($ in millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$218 $224 $212 
Operating cash flows paid for finance leases$1 $1 $1 
Financing cash flows paid for finance leases$2 $3 $2 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$161 $253 $227 
Finance leases$3 $— $4 
Lease terms and discount rates as of December 31, 2022, 2021 and 2020 were as follows:
202220212020
Weighted-average remaining lease term (in years)
Operating leases6.77.17.4
Finance leases9.06.46.1
Weighted-average discount rate
Operating leases2.6 %2.1 %2.4 %
Finance leases5.7 %5.8 %7.0 %
As of December 31, 2022, maturities of lease liabilities were as follows:
($ in millions)Operating LeasesFinance Leases
2023$201 $3 
2024166 2 
2025129 2 
2026100 1 
202778 1 
Thereafter219 3 
Total lease payments$893 $12 
Less: Interest74 2 
Total lease obligations$819 $10 
Leases Leases PPG leases certain retail paint stores, warehouses, distribution facilities, office space, fleet vehicles and equipment.
The components of lease expense for the years ended December 31, 2022, 2021 and 2020 were as follows:
($ in millions)Classification in the Consolidated Statement of Income202220212020
Operating lease costCost of sales, exclusive of depreciation and amortization$43 $41 $34 
Operating lease costSelling, general and administrative216 219 206 
Total operating lease cost$259 $260 $240 
Finance lease cost:
Amortization of right-of-use assetsDepreciation$2 $2 $2 
Interest on lease liabilitiesInterest expense1 1 1 
Total finance lease cost$3 $3 $3 
Total lease cost$262 $263 $243 
Total operating lease cost for the years ended December 31, 2022, 2021 and 2020 is inclusive of the following:
($ in millions)202220212020
Variable lease costs$18 $18 $17 
Short-term lease costs$22 $16 $8 
The lease amounts included in the consolidated balance sheet as of December 31, 2022 and 2021 were as follows:
($ in millions)Classification on the Consolidated Balance Sheet20222021
Assets:
OperatingOperating lease right-of-use assets$829 $891 
Finance(1)
Property, plant, and equipment, net15 13 
Total leased assets$844 $904 
Liabilities:
Current
OperatingCurrent portion of operating lease liabilities$183 $192 
FinanceShort-term debt and current portion of long-term debt3 3 
Noncurrent
OperatingOperating lease liabilities$636 $693 
FinanceLong-term debt7 7 
Total lease liabilities$829 $895 
(1)Net of accumulated depreciation of $14 million and $13 million as of December 31, 2022 and 2021, respectively.
Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 was as follows:
($ in millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases$218 $224 $212 
Operating cash flows paid for finance leases$1 $1 $1 
Financing cash flows paid for finance leases$2 $3 $2 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$161 $253 $227 
Finance leases$3 $— $4 
Lease terms and discount rates as of December 31, 2022, 2021 and 2020 were as follows:
202220212020
Weighted-average remaining lease term (in years)
Operating leases6.77.17.4
Finance leases9.06.46.1
Weighted-average discount rate
Operating leases2.6 %2.1 %2.4 %
Finance leases5.7 %5.8 %7.0 %
As of December 31, 2022, maturities of lease liabilities were as follows:
($ in millions)Operating LeasesFinance Leases
2023$201 $3 
2024166 2 
2025129 2 
2026100 1 
202778 1 
Thereafter219 3 
Total lease payments$893 $12 
Less: Interest74 2 
Total lease obligations$819 $10