Operating Leases

Our portfolio of leases primarily consists of real estate office space, manufacturing and warehousing facilities, land and equipment. Certain leases contain escalation clauses and renewal or purchase options, and generally our leases have no residual value guarantees or material covenants. We exclude leases with a term of one year or less from our balance sheet, and do not separate non-lease components from our real estate leases.

Rent expense under operating leases was $317 million, $294 million and $317 million in the years ended December 31, 2022, 2021 and 2020. Variable lease costs were insignificant in the years ended December 31, 2022, 2021 and 2020. At December 31, 2022 and 2021, operating lease right of use assets in Other assets were $1.1 billion, operating lease liabilities in Accrued liabilities were $247 million and $204 million and non-current operating lease liabilities in Other liabilities were $967 million and $1.0 billion. Operating lease right of use assets obtained in exchange for lease obligations were $252 million and $328 million in the years ended December 31, 2022 and 2021. Our undiscounted future lease obligations related to operating leases having initial terms in excess of one year are $274 million, $240 million, $195 million, $160 million, $122 million and $396 million for the years 2023, 2024, 2025, 2026, 2027 and thereafter, with imputed interest of $173 million as of December 31, 2022. The weighted average discount rate was 4.0% and 3.5% and the weighted-average remaining lease term was 6.7 years and 7.1 years at December 31, 2022 and 2021. Payments for operating leases included in Net cash provided by (used in) operating activities were $314 million, $301 million and $309 million in the years ended December 31, 2022, 2021 and 2020. Lease agreements that have not yet commenced were $198 million at December 31, 2022.

Equipment on Operating Leases

Equipment on operating leases primarily consists of leases to retail customers of GM Financial.


	December 31, 2022		December 31, 2021
Equipment on operating leases	$	40,919	$	47,423
Less: accumulated depreciation	(8,218)		(9,494)
Equipment on operating leases, net	$	32,701	$	37,929

At December 31, 2022, the estimated residual value of our leased assets at the end of the lease term was $24.7 billion.

Depreciation expense related to Equipment on operating leases, net was $4.8 billion, $6.1 billion and $7.2 billion in the years ended December 31, 2022, 2021 and 2020.

The following table summarizes lease payments due to GM Financial on leases to retail customers:


	Years Ending December 31,
	2023		2024		2025		2026		2027		Thereafter		Total
Lease receipts under operating leases	$	4,880	$	2,804	$	1,049	$	117	$	2	$	—	$	8,852