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Lease Commitments (Notes) | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
LEASE COMMITMENTS | LEASE COMMITMENTS We lease land, dealership facilities, offices, distribution centers, warehouses, and equipment under agreements with contractual periods ranging from less than one year to 40 years. Many of our leases contain one or more options to extend. In certain dealership lease agreements, we are the tenant and we sublease the site to a dealer. In the event the sublease is terminated, we have the option to terminate the head lease. We include options that we are reasonably certain to exercise in our evaluation of the lease term after considering all relevant economic and financial factors. Leases that are economically similar to the purchase of an asset are classified as finance leases. The leased (“right-of-use”) assets in finance lease arrangements are reported in Net property on our consolidated balance sheets. Otherwise, the leases are classified as operating leases and reported in Other assets in the non-current assets section of our consolidated balance sheets. For the majority of our leases, we do not separate the non-lease components (e.g., maintenance and operating services) from the lease components to which they relate. Instead, non-lease components are included in the measurement of the lease liabilities. However, we do separate lease and non-lease components for contracts containing a significant service component (e.g., energy performance contracts). We calculate the initial lease liability as the present value of fixed payments not yet paid and variable payments that are based on a market rate or an index (e.g., CPI), measured at commencement. The majority of our leases are discounted using our incremental borrowing rate because the rate implicit in the lease is not readily determinable. All other variable payments are expensed as incurred. NOTE 18. LEASE COMMITMENTS (Continued) Lease right-of-use assets and liabilities at December 31 were as follows (in millions):
|  | 2020 |  | 2021
Operating leases |  |  |  |
Other assets, non-current |  | $ | 1,287 |  |  | $ | 1,337 |
Other liabilities and deferred revenue, current |  | $ | 323 |  |  | $ | 345 |
Other liabilities and deferred revenue, non-current |  | 991 |  |  | 1,048 |
Total operating lease liabilities |  | $ | 1,314 |  |  | $ | 1,393 |
Finance leases |  |  |  |
Property and equipment, gross |  | $ | 540 |  |  | $ | 715 |
Accumulated depreciation |  | (50) |  |  | (68) |
Property and equipment, net |  | $ | 490 |  |  | $ | 647 |
Company excluding Ford Credit debt payable within one year |  | $ | 46 |  |  | $ | 76 |
Company excluding Ford Credit long-term debt |  | 368 |  |  | 489 |
Total finance lease liabilities |  | $ | 414 |  |  | $ | 565 |
The amounts contractually due on our lease liabilities as of December 31, 2021 were as follows (in millions):
|  | Operating Leases (a) |  | Finance Leases
2022 |  | $ | 385 |  |  | $ | 94 |
2023 |  | 307 |  |  | 88 |
2024 |  | 223 |  |  | 70 |
2025 |  | 161 |  |  | 62 |
2026 |  | 128 |  |  | 57 |
Thereafter |  | 335 |  |  | 288 |
Total |  | 1,539 |  |  | 659 |
Less: Present value discount |  | 146 |  |  | 94 |
Total lease liabilities |  | $ | 1,393 |  |  | $ | 565 |
__________ (a) Excludes approximately $252 million in future lease payments for various operating leases commencing in a future period. NOTE 18. LEASE COMMITMENTS (Continued) Supplemental cash flow information related to leases for the years ended December 31 was as follows (in millions):
|  | 2019 |  | 2020 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 460 |  |  | $ | 434 |  |  | $ | 424 |
Operating cash flows from finance leases |  | 6 |  |  | 15 |  |  | 14 |
Financing cash flows from finance leases |  | 35 |  |  | 105 |  |  | 52 |
Right-of-use assets obtained in exchange for lease liabilities |  |  |  |  |  |
Operating leases |  | $ | 527 |  |  | $ | 304 |  |  | $ | 441 |
Finance leases |  | 43 |  |  | 306 |  |  | 192 |
The components of lease expense for the years ended December 31 were as follows (in millions):
|  | 2019 |  | 2020 |  | 2021
Operating lease expense |  | $ | 467 |  |  | $ | 463 |  |  | $ | 444 |
Variable lease expense |  | 53 |  |  | 57 |  |  | 49 |
Sublease income |  | (16) |  |  | (14) |  |  | (16) |
Finance lease expense |  |  |  |  |  |
Amortization of right-of-use assets |  | 15 |  |  | 27 |  |  | 34 |
Interest on lease liabilities |  | 6 |  |  | 15 |  |  | 14 |
Total lease expense |  | $ | 525 |  |  | $ | 548 |  |  | $ | 525 |
The weighted-average remaining lease term and weighted-average discount rate at December 31 were as follows:
|  | 2019 |  | 2020 |  | 2021
Weighted-average remaining lease term (in years) |  |  |  |  |  |
Operating leases |  | 6.3 |  | 6.3 |  | 6.0
Finance leases |  | 3.0 |  | 14.8 |  | 12.1
Weighted-average discount rate |  |  |  |  |  |
Operating leases |  | 3.4 | % |  | 3.8 | % |  | 3.3 | %
Finance leases |  | 3.3 | % |  | 3.5 | % |  | 3.3 | %

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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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