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Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | Leases The components of lease expense are as follows:
(Millions) |  | 2021 |  | 2020 |  | 2019
Operating lease cost |  | $ | 319 |  |  | $ | 348 |  |  | $ | 308 |
Finance lease cost: |  |  |  |  |  |
Amortization of assets |  | 15 |  |  | 21 |  |  | 20 |
Interest on lease liabilities |  | 2 |  |  | 1 |  |  | 2 |
Variable lease cost |  | 127 |  |  | 101 |  |  | 93 |
Total net lease cost |  | $ | 463 |  |  | $ | 471 |  |  | $ | 423 |
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 Sheet |  | 2021 |  | 2020
Operating leases: |  |  |  |  |  |
Operating lease right of use assets |  | Operating lease right of use assets |  | $ | 858 |  |  | $ | 864 |
Current operating lease liabilities |  | Operating lease liabilities - current |  | 263 |  |  | 256 |
Noncurrent operating lease liabilities |  | Operating lease liabilities |  | 591 |  |  | 609 |
Total operating lease liabilities |  |  |  | 854 |  |  | 865 |
Finance leases: |  |  |  |  |  |
Property and equipment, at cost |  | Property, plant and equipment |  | 223 |  |  | 225 |
Accumulated amortization |  | Property, plant and equipment (accumulated depreciation) |  | (117) |  |  | (106) |
Property and equipment, net |  |  |  | 106 |  |  | 119 |
Current obligations of finance leases |  | Other current liabilities |  | 7 |  |  | 22 |
Finance leases, net of current obligations |  | Other liabilities |  | 93 |  |  | 93 |
Total finance lease liabilities |  |  |  | $ | 100 |  |  | $ | 115 |
Weighted average remaining lease term (in years): |  |  |  |
Operating leases |  |  |  | 5.5 |  | 5.6
Finance leases |  |  |  | 6.6 |  | 7.6
Weighted average discount rate: |  |  |  |  |  |
Operating leases |  |  |  | 1.8 | % |  | 2.4 | %
Finance leases |  |  |  | 3.3 | % |  | 3.5 | %
Supplemental cash flow and other information related to leases is as follows:
(Millions) |  | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 317 |  |  | $ | 326 |  |  | $ | 309 |
Operating cash flows from finance leases |  | 2 |  |  | 1 |  |  | 2 |
Financing cash flows from finance leases |  | 19 |  |  | 58 |  |  | 18 |
Right of use assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Operating leases |  | 342 |  |  | 250 |  |  | 326 |
Finance leases |  | 3 |  |  | 18 |  |  | 61 |
Sale leased-back activity in 2021 was not material. In the first quarter of 2020, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $10 million. In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $9 million. During 2019, the Company sold and leased-back an office location and a manufacturing site resulting in a combined gain of $82 million. Maturities of lease liabilities were as follows:
|  | December 31, 2021
(Millions) |  | Finance Leases |  | Operating Leases
2022 |  | $ | 20 |  |  | $ | 280 |
2023 |  | 19 |  |  | 203 |
2024 |  | 17 |  |  | 134 |
2025 |  | 11 |  |  | 80 |
2026 |  | 9 |  |  | 45 |
After 2026 |  | 31 |  |  | 151 |
Total |  | 107 |  |  | 893 |
Less: Amounts representing interest |  | 7 |  |  | 39 |
Present value of future minimum lease payments |  | 100 |  |  | 854 |
Less: Current obligations |  | 7 |  |  | 263 |
Long-term obligations |  | $ | 93 |  |  | $ | 591 |
As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of approximately $18 million. These commitments pertain to 3M’s right of use of certain buildings.
Leases | Leases The components of lease expense are as follows:
(Millions) |  | 2021 |  | 2020 |  | 2019
Operating lease cost |  | $ | 319 |  |  | $ | 348 |  |  | $ | 308 |
Finance lease cost: |  |  |  |  |  |
Amortization of assets |  | 15 |  |  | 21 |  |  | 20 |
Interest on lease liabilities |  | 2 |  |  | 1 |  |  | 2 |
Variable lease cost |  | 127 |  |  | 101 |  |  | 93 |
Total net lease cost |  | $ | 463 |  |  | $ | 471 |  |  | $ | 423 |
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 Sheet |  | 2021 |  | 2020
Operating leases: |  |  |  |  |  |
Operating lease right of use assets |  | Operating lease right of use assets |  | $ | 858 |  |  | $ | 864 |
Current operating lease liabilities |  | Operating lease liabilities - current |  | 263 |  |  | 256 |
Noncurrent operating lease liabilities |  | Operating lease liabilities |  | 591 |  |  | 609 |
Total operating lease liabilities |  |  |  | 854 |  |  | 865 |
Finance leases: |  |  |  |  |  |
Property and equipment, at cost |  | Property, plant and equipment |  | 223 |  |  | 225 |
Accumulated amortization |  | Property, plant and equipment (accumulated depreciation) |  | (117) |  |  | (106) |
Property and equipment, net |  |  |  | 106 |  |  | 119 |
Current obligations of finance leases |  | Other current liabilities |  | 7 |  |  | 22 |
Finance leases, net of current obligations |  | Other liabilities |  | 93 |  |  | 93 |
Total finance lease liabilities |  |  |  | $ | 100 |  |  | $ | 115 |
Weighted average remaining lease term (in years): |  |  |  |
Operating leases |  |  |  | 5.5 |  | 5.6
Finance leases |  |  |  | 6.6 |  | 7.6
Weighted average discount rate: |  |  |  |  |  |
Operating leases |  |  |  | 1.8 | % |  | 2.4 | %
Finance leases |  |  |  | 3.3 | % |  | 3.5 | %
Supplemental cash flow and other information related to leases is as follows:
(Millions) |  | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 317 |  |  | $ | 326 |  |  | $ | 309 |
Operating cash flows from finance leases |  | 2 |  |  | 1 |  |  | 2 |
Financing cash flows from finance leases |  | 19 |  |  | 58 |  |  | 18 |
Right of use assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Operating leases |  | 342 |  |  | 250 |  |  | 326 |
Finance leases |  | 3 |  |  | 18 |  |  | 61 |
Sale leased-back activity in 2021 was not material. In the first quarter of 2020, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $10 million. In the first quarter of 2019, 3M sold and leased-back certain recently constructed machinery and equipment in return for municipal securities, which in aggregate, were recorded as a finance lease asset and obligation of approximately $9 million. During 2019, the Company sold and leased-back an office location and a manufacturing site resulting in a combined gain of $82 million. Maturities of lease liabilities were as follows:
|  | December 31, 2021
(Millions) |  | Finance Leases |  | Operating Leases
2022 |  | $ | 20 |  |  | $ | 280 |
2023 |  | 19 |  |  | 203 |
2024 |  | 17 |  |  | 134 |
2025 |  | 11 |  |  | 80 |
2026 |  | 9 |  |  | 45 |
After 2026 |  | 31 |  |  | 151 |
Total |  | 107 |  |  | 893 |
Less: Amounts representing interest |  | 7 |  |  | 39 |
Present value of future minimum lease payments |  | 100 |  |  | 854 |
Less: Current obligations |  | 7 |  |  | 263 |
Long-term obligations |  | $ | 93 |  |  | $ | 591 |
As of December 31, 2021, the Company has additional operating lease commitments that have not yet commenced of approximately $18 million. These commitments pertain to 3M’s right of use of certain buildings.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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