LEASES

12 Months Ended

Dec. 31, 2021

The Company leases certain properties and buildings (including branches, warehouses, DCs and office space) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists mainly of operating leases that expire at various dates through 2036.

Information related to operating leases is as follows (in millions of dollars):


	As of December 31,
	2021		2020
ROU Assets
Operating lease right-of-use	$	393	$	210
Operating lease liabilities
Operating lease liability	66		57
Long-term operating lease liability	334		162
Total operating lease liabilities	$	400	$	219

During the first quarter of 2020, the Company recorded impairment charges in SG&A in connection with the impairment of Fabory’s ROU assets for approximately $20 million. The Company divested Fabory during the second quarter of 2020.


	As of December 31,
	2021			2020
Weighted average remaining lease term	7 years			5 years
Weighted average incremental borrowing rate	0.81		%	1.95		%



Cash paid for operating leases	$	68		$	69
ROU assets obtained in exchange for operating lease obligations	$	244		$	74

Rent expense was $74 million for 2021 and $76 million for 2020 and 2019. These amounts are net of sublease income of $2 million for 2021 and 2020 and $3 million for 2019.

Remaining maturity of existing lease liabilities as of December 31, 2021 are as follows (in millions of dollars):


Year	Operating Leases
2022	$	72
2023	69
2024	53
2025	44
2026	37
Thereafter	140
Total lease payments	415
Less interest	(15)
Present value of lease liabilities	$	400

As of December 31, 2021 and 2020, the Company's finance leases and service contracts with lease arrangements were not material. Finance leases are reported in Property, buildings and equipment, net, and as a finance lease liability in Accrued Expenses and Other non-current liabilities, respectively.

As of December 31, 2021, the Company's future lease obligations that have not yet commenced were $18 million.