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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

13. LEASES

At December 31, 2023 and 2022, DESC had the following lease assets and liabilities recorded in the Consolidated Balance Sheets:

 

At December 31,

 

2023

 

 

2022

 

(millions)

 

 

 

 

 

 

Lease assets:

 

 

 

 

 

 

Operating lease assets(1)

 

$

18

 

 

$

20

 

Finance lease assets(2)

 

 

6

 

 

 

9

 

Total lease assets

 

$

24

 

 

$

29

 

Lease liabilities:

 

 

 

 

 

 

Operating lease - current(3)

 

$

2

 

 

$

3

 

Operating lease - noncurrent(4)

 

 

17

 

 

 

18

 

Finance lease - current(5)

 

 

3

 

 

 

4

 

Finance lease - noncurrent

 

 

4

 

 

 

6

 

Total lease liabilities

 

$

26

 

 

$

31

 

 

(1)
Included in other deferred debits and other assets in the Consolidated Balance Sheets.
(2)
Included in utility plant, net, in the Consolidated Balance Sheets, net of $17 million and $20 million of accumulated amortization at December 31, 2023 and December 31, 2022, respectively.
(3)
Included in other current liabilities in the Consolidated Balance Sheets.
(4)
Included in other deferred credits and other liabilities in the Consolidated Balance Sheets.
(5)
Included in securities due within one year in the Consolidated Balance Sheets.

For the years ended December 31, 2023, 2022 and 2021, total lease cost consisted of the following:

 

Year Ended December 31,

 

2023

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

Amortization

 

$

3

 

 

$

4

 

 

$

6

 

Interest

 

 

—

 

 

 

1

 

 

 

1

 

Operating lease cost

 

 

5

 

 

 

4

 

 

 

4

 

Short-term lease cost

 

 

2

 

 

 

2

 

 

 

2

 

Total lease cost

 

$

10

 

 

$

11

 

 

$

13

 

 

For the years ended December 31, 2023, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities consisted of the following amounts, included in the Consolidated Statements of Cash Flows:

 

Year Ended December 31,

 

2023

 

 

2022

 

 

2021

 

(millions)

 

 

 

 

 

 

 

 

 

Operating cash flows from finance leases

 

$

—

 

 

$

1

 

 

$

1

 

Operating cash flows from operating leases

 

 

4

 

 

 

6

 

 

 

4

 

Financing cash flows from finance leases

 

 

4

 

 

 

4

 

 

 

6

 

 

At December 31, 2023 and 2022, the weighted average remaining lease term and weighted average discount rate for finance and operating leases were as follows:

 

At December 31,

 

2023

 

 

2022

 

Weighted average remaining lease term - finance leases

 

3 years

 

 

3 years

 

Weighted average remaining lease term - operating leases

 

18 years

 

 

17 years

 

Weighted average discount rate - finance leases

 

 

2.96

%

 

 

2.91

%

Weighted average discount rate - operating leases

 

 

4.12

%

 

 

3.94

%

 

 

Lease liabilities have the following scheduled maturities:

 

(millions)

 

Operating

 

 

Finance

 

2024

 

$

3

 

 

$

3

 

2025

 

 

2

 

 

 

2

 

2026

 

 

2

 

 

 

1

 

2027

 

 

2

 

 

 

—

 

2028

 

 

1

 

 

 

—

 

After 2028

 

 

19

 

 

 

—

 

Total undiscounted lease payments

 

 

29

 

 

 

6

 

Present value adjustment

 

 

(10

)

 

 

1

 

Present value of lease liabilities

 

$

19

 

 

$

7