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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | Leases The Company leases generating facilities, land, office and equipment, railcars, fleet vehicles and storefront space at retail stores. Operating leases with an initial term greater than twelve months are recognized as right-of-use assets and lease liabilities in the consolidated balance sheets. The Company made an accounting policy election, as permitted by ASC 842, for all asset classes not to recognize right-of-use assets and lease liabilities in the consolidated balance sheets for its short-term leases, which are leases that have a lease term of twelve months or less. For the initial measurement of lease liabilities, the discount rate that the Company uses is either the rate implicit in the lease, if known, or its incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, over a similar term an amount equal to the payments for the lease. The Company recognizes lease expense for all operating leases on a straight-line basis over the lease term. In the future, should another systematic basis become more representative of the pattern in which the lessee expects to consume the remaining economic benefit of the right-of-use asset, the Company will use that basis for lease expense. The Company considers a contract to be or to contain a lease when both of the following conditions apply: 1) an asset is either explicitly or implicitly identified in the contract and 2) the contract conveys to the Company the right to control the use of the identified asset for a period of time. The Company has the right to control the use of the identified asset when the Company has both the right to obtain substantially all the economic benefits from the use of the identified asset and the right to direct how and for what purpose the identified asset is used throughout the period of use. Lease payments are typically fixed and payable on a monthly, quarterly, semi-annual or annual basis. Lease payments under certain agreements may escalate over the lease term either by a fixed percentage or a fixed dollar amount. Certain leases may provide for variable lease payments in the form of payments based on unit availability, usage, a percentage of sales from the location under lease, or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments. The Company has no leases which contain residual value guarantees provided by the Company as a lessee. Lease Cost:
| For the Year Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Finance lease cost | $ | 4 |  |  | $ | 4 |  |  | $ | 3 |
Operating lease cost | 85 |  |  | 91 |  |  | 100 |
Short-term lease cost | 7 |  |  | 3 |  |  | 3 |
Variable lease cost | 86 |  |  | 9 |  |  | 6 |
Sublease income | (2) |  |  | (2) |  |  | (17) |
Total lease cost | $ | 180 |  |  | $ | 105 |  |  | $ | 95 |
Other information:
| For the Year Ended December 31,
(In millions) | 2022 |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 183 |  |  | $ | 102 |  |  | $ | 101 |
Financing cash flows from finance leases | 5 |  |  | 6 |  |  | 1 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3 |  |  | 16 |  |  | 5 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 28 |  |  | 47 |  |  | 4 |
Lease Term and Discount Rate for leases:
| December 31, 2022 |  | December 31, 2021
Finance leases: |  |  |
Weighted average remaining lease term (in years) | 2.6 |  | 3.6
Weighted average discount rate | 2.82 | % |  | 2.46 | %
Operating leases: |  |  |
Weighted average remaining lease term (in years) | 4.3 |  | 4.7
Weighted average discount rate | 5.37 | % |  | 5.44 | %
As of December 31, 2022, annual payments based on the maturities of NRG's operating leases are expected to be as follows:
| In millions
2023 | $ | 97 |
2024 | 82 |
2025 | 56 |
2026 | 14 |
2027 | 10 |
Thereafter | 52 |
Total undiscounted lease payments | $ | 311 |
Less: present value adjustment | (48) |
Total discounted lease payments | $ | 263 |

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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