v3.22.4
LEASES (Notes)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lessee, Operating And Finance Leases LEASES
Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets.

The Corporation routinely leases product and utility production facilities, sales and administrative offices, warehouses and tanks for product storage, motor vehicles, railcars, computers, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms of up to 18 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants.

The components of lease cost for operating and finance leases for the years ended December 31, 2022, 2021 and 2020 were as follows:

Lease Cost202220212020
In millions
Operating lease cost$25 $23 $20 
Short-term lease cost31 28 22 
Variable lease cost19 39 8 
Amortization of right-of-use assets - finance3 3 2 
Total lease cost$78 $93 $52 

The following table provides supplemental cash flow and other information related to leases:

Other Lease Information202220212020
In millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$25 $23 $19 
Financing cash flows for finance leases$3 $3 $2 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases $2 $15 $48 
Finance leases$1 $5 $3 
The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2022 and 2021:

Lease PositionBalance Sheet ClassificationDec 31, 2022Dec 31, 2021
In millions
Assets
Operating lease assetsOperating lease right-of-use assets$107 $122 
Finance lease assetsProperty20 19 
Finance lease amortizationAccumulated depreciation(13)(11)
Total lease assets$114 $130 
Liabilities
Current
OperatingOperating lease liabilities - current$21 $20 
FinanceLong-term debt due within one year3 3 
Noncurrent
OperatingOperating lease liabilities - noncurrent87 103 
FinanceLong-Term Debt4 6 
Total lease liabilities$115 $132 

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2022 and 2021 are provided below:

Lease Term and Discount RateDec 31, 2022Dec 31, 2021
Weighted-average remaining lease term
Operating leases6.3 years7.1 years
Finance leases2.5 years3.1 years
Weighted-average discount rate
Operating leases3.43 %3.17 %
Finance leases2.33 %2.53 %

The following table provides the maturities of lease liabilities at December 31, 2022:

Maturities of Lease LiabilitiesDec 31, 2022
In millionsOperating LeasesFinance Leases
2023
$24 $3 
202423 3 
202521 2 
202620 — 
20279 — 
2028 and thereafter 22 — 
Total future undiscounted lease payments$119 $8 
Less: Imputed interest11 1 
Total present value of lease liabilities$108 $7 

At December 31, 2022, the Corporation had no additional leases for assets that have not yet commenced.