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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases, Operating
Note 5. Leases

We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 18 years, some of which include options to extend the leases for up to 6 years. We assume the majority of our termination options will not be exercised when determining the lease term of our leases. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases, with the exception of some fleet and equipment leases. Some of our leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payment leases are not included in our recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in our lease assets and liabilities based on the indices or rates as of lease commencement.

The components of lease costs were as follows:
For the Years Ended December 31,
20212020
(in millions)
Operating lease cost$228 $236 
Finance lease cost:
Amortization of right-of-use assets89 60 
Interest on lease liabilities7 7 
Short-term lease cost29 26 
Variable lease cost506 442 
Sublease income(6)(7)
Total lease cost$853 $764 
Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
20212020
(in millions)
Cash paid for amounts included in the measurement of
   lease liabilities:
Operating cash flows from operating leases$(229)$(236)
Operating cash flows from finance leases(8)(7)
Financing cash flows from finance leases(88)(56)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$186 $208 
Finance leases76 180 

Supplemental balance sheet information related to leases was as follows:
As of December 31,
20212020
(in millions)
Operating Leases:
Operating lease right-of-use assets, net of amortization$613 $638 
Other current liabilities$174 $190 
Long-term operating lease liabilities459 470 
Total operating lease liabilities$633 $660 
Finance Leases:
Finance leases, net of amortization (within property, plant and equipment)$233 $252 
Current portion of long-term debt$82 $74 
Long-term debt157 182 
Total finance lease liabilities$239 $256 
Weighted Average Remaining Lease Term
Operating leases6.6 years6.3 years
Finance leases3.9 years4.4 years
Weighted Average Discount Rate
Operating leases3.3 %3.2 %
Finance leases2.9 %3.2 %
Maturities of lease liabilities were as follows:
As of December 31, 2021
Operating LeasesFinance Leases
(in millions)
Year Ending December 31:
2022$191 $87 
2023141 69 
202496 47 
202569 25 
202645 11 
Thereafter186 14 
Total future undiscounted lease payments$728 $253 
Less imputed interest(95)(14)
Total reported lease liability$633 $239 

On October 5, 2021, the Company closed an asset sale-leaseback transaction on a property in New Jersey. The Company received proceeds of approximately $142 million, net of selling costs for the property, which had a carrying value of $51 million, and resulted in an approximately $91 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The leaseback is expected to end in 2023 and has three 90-day renewal options.
Leases, Finance
Note 5. Leases

We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 18 years, some of which include options to extend the leases for up to 6 years. We assume the majority of our termination options will not be exercised when determining the lease term of our leases. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases, with the exception of some fleet and equipment leases. Some of our leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payment leases are not included in our recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in our lease assets and liabilities based on the indices or rates as of lease commencement.

The components of lease costs were as follows:
For the Years Ended December 31,
20212020
(in millions)
Operating lease cost$228 $236 
Finance lease cost:
Amortization of right-of-use assets89 60 
Interest on lease liabilities7 7 
Short-term lease cost29 26 
Variable lease cost506 442 
Sublease income(6)(7)
Total lease cost$853 $764 
Supplemental cash flow information related to leases was as follows:
For the Years Ended December 31,
20212020
(in millions)
Cash paid for amounts included in the measurement of
   lease liabilities:
Operating cash flows from operating leases$(229)$(236)
Operating cash flows from finance leases(8)(7)
Financing cash flows from finance leases(88)(56)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$186 $208 
Finance leases76 180 

Supplemental balance sheet information related to leases was as follows:
As of December 31,
20212020
(in millions)
Operating Leases:
Operating lease right-of-use assets, net of amortization$613 $638 
Other current liabilities$174 $190 
Long-term operating lease liabilities459 470 
Total operating lease liabilities$633 $660 
Finance Leases:
Finance leases, net of amortization (within property, plant and equipment)$233 $252 
Current portion of long-term debt$82 $74 
Long-term debt157 182 
Total finance lease liabilities$239 $256 
Weighted Average Remaining Lease Term
Operating leases6.6 years6.3 years
Finance leases3.9 years4.4 years
Weighted Average Discount Rate
Operating leases3.3 %3.2 %
Finance leases2.9 %3.2 %
Maturities of lease liabilities were as follows:
As of December 31, 2021
Operating LeasesFinance Leases
(in millions)
Year Ending December 31:
2022$191 $87 
2023141 69 
202496 47 
202569 25 
202645 11 
Thereafter186 14 
Total future undiscounted lease payments$728 $253 
Less imputed interest(95)(14)
Total reported lease liability$633 $239 

On October 5, 2021, the Company closed an asset sale-leaseback transaction on a property in New Jersey. The Company received proceeds of approximately $142 million, net of selling costs for the property, which had a carrying value of $51 million, and resulted in an approximately $91 million gain on the sale transaction. The leaseback is accounted for as an operating lease. The leaseback is expected to end in 2023 and has three 90-day renewal options.