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LEASES | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
LEASES | LEASES We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option. The following table details the composition of lease expense for 2021, 2020, and 2019:
($ in millions) |  | 2021 | 2020 | 2019
Operating lease cost |  | $ | 149 |  | $ | 157 |  | $ | 185 |
Variable lease cost |  | 51 |  | 60 |  | 113 |
We recorded impairment charges of $116 million in 2020 and $99 million in 2019 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. Additionally, during the year ended 2019, we recorded an expense of $34 million in the “Restructuring and merger-related charges” caption of our Income Statements due to the impairment of a Legacy-Starwood office building accounted for as a finance lease. The following table presents our future minimum lease payments at year-end 2021:
($ in millions) | Operating Leases |  | Finance Leases
2022 | $ | 191 |  | $ | 13
2023 | 150 |  | 14
2024 | 141 |  | 14
2025 | 133 |  | 14
2026 | 109 |  | 15
Thereafter | 942 |  | 122
Total minimum lease payments | $ | 1,666 |  | $ | 192
Less: Amount representing interest | 418 |  | 46
Present value of minimum lease payments | $ | 1,248 |  | $ | 146
The following table presents the composition of our current and noncurrent lease liability at year-end 2021 and 2020:
($ in millions) | December 31, 2021 |  | December 31, 2020
| Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
Current (1) | $ | 150 |  |  | $ | 7 |  |  | $ | 147 |  |  | $ | 7 |
Noncurrent (2) | 1,098 |  |  | 139 |  |  | 823 |  |  | 146 |
| $ | 1,248 |  |  | $ | 146 |  |  | $ | 970 |  |  | $ | 153 |
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets. The following table presents additional information about our lease obligations at year-end 2021 and 2020:
|  | 2021 |  | 2020
|  | Operating leases |  | Finance leases |  | Operating leases |  | Finance leases
Weighted Average Remaining Lease Term (in years) |  | 14 |  | 12 |  | 10 |  | 13
Weighted Average Discount Rate |  | 4.2 | % |  | 4.4 | % |  | 4.6 | % |  | 4.4 | %
The following table presents supplemental cash flow information for 2021 and 2020:
($ in millions) |  | 2021 | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows for operating leases |  | $ | 181 |  | $ | 162 |
Lease assets obtained in exchange for lease obligations: |  |  |
Operating leases |  | 463 |  | 35 |
LEASES | LEASES We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option. The following table details the composition of lease expense for 2021, 2020, and 2019:
($ in millions) |  | 2021 | 2020 | 2019
Operating lease cost |  | $ | 149 |  | $ | 157 |  | $ | 185 |
Variable lease cost |  | 51 |  | 60 |  | 113 |
We recorded impairment charges of $116 million in 2020 and $99 million in 2019 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. Additionally, during the year ended 2019, we recorded an expense of $34 million in the “Restructuring and merger-related charges” caption of our Income Statements due to the impairment of a Legacy-Starwood office building accounted for as a finance lease. The following table presents our future minimum lease payments at year-end 2021:
($ in millions) | Operating Leases |  | Finance Leases
2022 | $ | 191 |  | $ | 13
2023 | 150 |  | 14
2024 | 141 |  | 14
2025 | 133 |  | 14
2026 | 109 |  | 15
Thereafter | 942 |  | 122
Total minimum lease payments | $ | 1,666 |  | $ | 192
Less: Amount representing interest | 418 |  | 46
Present value of minimum lease payments | $ | 1,248 |  | $ | 146
The following table presents the composition of our current and noncurrent lease liability at year-end 2021 and 2020:
($ in millions) | December 31, 2021 |  | December 31, 2020
| Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
Current (1) | $ | 150 |  |  | $ | 7 |  |  | $ | 147 |  |  | $ | 7 |
Noncurrent (2) | 1,098 |  |  | 139 |  |  | 823 |  |  | 146 |
| $ | 1,248 |  |  | $ | 146 |  |  | $ | 970 |  |  | $ | 153 |
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets. The following table presents additional information about our lease obligations at year-end 2021 and 2020:
|  | 2021 |  | 2020
|  | Operating leases |  | Finance leases |  | Operating leases |  | Finance leases
Weighted Average Remaining Lease Term (in years) |  | 14 |  | 12 |  | 10 |  | 13
Weighted Average Discount Rate |  | 4.2 | % |  | 4.4 | % |  | 4.6 | % |  | 4.4 | %
The following table presents supplemental cash flow information for 2021 and 2020:
($ in millions) |  | 2021 | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash outflows for operating leases |  | $ | 181 |  | $ | 162 |
Lease assets obtained in exchange for lease obligations: |  |  |
Operating leases |  | 463 |  | 35 |

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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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