v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The components of lease expense are as follows:
(Millions)202220212020
Operating lease cost$295 $319 $348 
Finance lease cost:
Amortization of assets15 15 21 
Interest on lease liabilities2 2 1 
Variable lease cost135 127 101 
Total net lease cost$447 $463 $471 
Short-term lease cost and income related to sub-lease activity is immaterial for the Company.
Supplemental balance sheet information related to leases is as follows:
(Millions unless noted)Location on face of Balance Sheet20222021
Operating leases:
Operating lease right of use assetsOperating lease right of use assets$829 $858 
Current operating lease liabilitiesOperating lease liabilities - current261 263 
Noncurrent operating lease liabilitiesOperating lease liabilities580 591 
Total operating lease liabilities841 854 
Finance leases:
Property and equipment, at costProperty, plant and equipment218 223 
Accumulated amortizationProperty, plant and equipment (accumulated depreciation)(126)(117)
Property and equipment, net92 106 
Current obligations of finance leasesOther current liabilities11 7 
Finance leases, net of current obligationsOther liabilities75 93 
Total finance lease liabilities$86 $100 
Weighted average remaining lease term (in years):
Operating leases5.55.5
Finance leases6.36.6
Weighted average discount rate:
Operating leases2.2 %1.8 %
Finance leases3.1 %3.3 %
Supplemental cash flow and other information related to leases is as follows:
(Millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$295 $317 $326 
Operating cash flows from finance leases2 2 1 
Financing cash flows from finance leases25 19 58 
Right of use assets obtained in exchange for lease liabilities:
Operating leases261 342 250 
Finance leases6 3 18 
Sale leased-back activity in 2022, 2021 and 2020 was not material.
Maturities of lease liabilities were as follows:
December 31, 2022
(Millions)Finance LeasesOperating Leases
2023$19 $268 
202418 192 
202511 131 
20269 83 
20277 55 
After 2027
26 162 
Total90 891 
Less: Amounts representing interest4 50 
Present value of future minimum lease payments86 841 
Less: Current obligations11 261 
Long-term obligations$75 $580 
As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of approximately $14 million. These commitments pertain to 3M’s right of use of certain buildings.
Leases Leases
The components of lease expense are as follows:
(Millions)202220212020
Operating lease cost$295 $319 $348 
Finance lease cost:
Amortization of assets15 15 21 
Interest on lease liabilities2 2 1 
Variable lease cost135 127 101 
Total net lease cost$447 $463 $471 
Short-term lease cost and income related to sub-lease activity is immaterial for the Company.
Supplemental balance sheet information related to leases is as follows:
(Millions unless noted)Location on face of Balance Sheet20222021
Operating leases:
Operating lease right of use assetsOperating lease right of use assets$829 $858 
Current operating lease liabilitiesOperating lease liabilities - current261 263 
Noncurrent operating lease liabilitiesOperating lease liabilities580 591 
Total operating lease liabilities841 854 
Finance leases:
Property and equipment, at costProperty, plant and equipment218 223 
Accumulated amortizationProperty, plant and equipment (accumulated depreciation)(126)(117)
Property and equipment, net92 106 
Current obligations of finance leasesOther current liabilities11 7 
Finance leases, net of current obligationsOther liabilities75 93 
Total finance lease liabilities$86 $100 
Weighted average remaining lease term (in years):
Operating leases5.55.5
Finance leases6.36.6
Weighted average discount rate:
Operating leases2.2 %1.8 %
Finance leases3.1 %3.3 %
Supplemental cash flow and other information related to leases is as follows:
(Millions)202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$295 $317 $326 
Operating cash flows from finance leases2 2 1 
Financing cash flows from finance leases25 19 58 
Right of use assets obtained in exchange for lease liabilities:
Operating leases261 342 250 
Finance leases6 3 18 
Sale leased-back activity in 2022, 2021 and 2020 was not material.
Maturities of lease liabilities were as follows:
December 31, 2022
(Millions)Finance LeasesOperating Leases
2023$19 $268 
202418 192 
202511 131 
20269 83 
20277 55 
After 2027
26 162 
Total90 891 
Less: Amounts representing interest4 50 
Present value of future minimum lease payments86 841 
Less: Current obligations11 261 
Long-term obligations$75 $580 
As of December 31, 2022, the Company has additional operating lease commitments that have not yet commenced of approximately $14 million. These commitments pertain to 3M’s right of use of certain buildings.