LEASES

12 Months Ended

Dec. 31, 2022

The Company’s operating leases, where Citi is a lessee, include real estate such as office space and branches and various types of equipment. These leases may contain renewal and extension options and early termination features; however, these options do not impact the lease term unless the Company is reasonably certain that it will exercise options. These leases have a weighted-average remaining lease term of approximately six years as of December 31, 2022 and 2021.

For additional information regarding Citi’s leases, see Note 1.

The following table presents information on the right-of-use (ROU) asset and lease liabilities included in Premises and equipment and Other liabilities, respectively:


In millions of dollars	December 31, 2022		December 31, 2021
ROU asset	$	2,892	$	2,914
Lease liability	3,076		3,116

The Company recognizes fixed lease costs on a straight-line basis throughout the lease term in the Consolidated Statement of Income. In addition, variable lease costs are recognized in the period in which the obligation for those payments is incurred.

The following table presents the total operating lease expense (principally for offices, branches and equipment) included in the Consolidated Statement of Income:


In millions of dollars	Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Operating lease expense(1)	$	1,048	$	1,061	$	1,054

(1) Balances presented net of $3 million, $12 million and $27 million of sublease income for the years ended December 31, 2022, 2021 and 2020, respectively.

The table below provides the Cash Flow Statement Supplemental Information:


In millions of dollars	December 31, 2022		December 31, 2021
Cash paid for amounts included in the measurement of lease liabilities	$	725	$	806
ROU assets obtained in exchange for new operating lease liabilities(1)(2)	775		845

(1) Represents non-cash activity and, accordingly, is not reflected in the Consolidated Statement of Cash Flows.

(2) Excludes the decrease in the ROU assets related to the purchase of a previously leased property.

Citi’s future lease payments are as follows:


In millions of dollars
2023	$	704
2024	635
2025	541
2026	437
2027	319
Thereafter	769
Total future lease payments	$	3,405
Less imputed interest (based on weighted-average discount rate of 3.1%)	$	(329)
Lease liability	$	3,076