Leases

6 Months Ended

Jun. 30, 2022

13. Leases

The Company leases certain fulfillment, cross-docking and services centers, office space, machines and vehicles in the various countries in which it operates. The lease agreements do not contain any residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases was as follows:


		June 30,		December 31,
		2022		2021
Operating Leases	(In millions)
Operating lease right-of-use assets	$	525	$	461

Operating lease liabilities	$	528	$	464

Finance Leases
Property and equipment, at cost		79		68
Accumulated depreciation		(21)		(14)
Property and equipment, net	$	58	$	54

Loans payable and other financial liabilities	$	49	$	46

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The following table summarizes the weighted average remaining lease term and the weighted average incremental borrowing rate for operating leases and the weighted average discount rate for finance leases at June 30, 2022:


Weighted average remaining lease term
Operating leases	7	Years
Finance leases	4	Years


Weighted average discount rate (*)
Operating leases	9	%
Finance leases	16	%

(*) Includes discount rates of leases in local currency and U.S. dollar.

The components of lease expense were as follows:


		Six Months Ended June 30,
		2022		2021
	(In millions)
Operating lease cost	$	59	$	34

Finance lease cost:
Depreciation of property and equipment		8		4
Interest on lease liabilities		4		2
Total finance lease cost	$	12	$	6

Supplemental cash flow information related to leases was as follows:


	Six Months Ended June 30,
		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:	(In millions)
Operating cash flows from operating leases	$	54	$	32
Financing cash flows from finance leases		9		9


Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	115	$	110
Finance leases		7		17

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by the Company’s incremental borrowing rates to calculate the lease liabilities for the operating and finance leases:


Period Ending June 30, 2022		Operating Leases		Finance Leases
	(In millions)
One year or less	$	121	$	19
One year to two years		117		19
Two years to three years		110		15
Three years to four years		92		7
Four years to five years		63		5
Thereafter		183		—
Total lease payments	$	686	$	65
Less imputed interest		(158)		(16)
Total	$	528	$	49