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LEASES (Notes) | 6 Months Ended
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Jun. 30, 2022
Leases [Abstract] |
Lessee, Operating And Finance Leases | LEASES For additional information on the Company's leases, see Note 17 to the Consolidated Financial Statements included in the 2021 10-K. The components of lease cost for operating and finance leases for the three and six months ended June 30, 2022 and 2021 were as follows:
Lease Cost | Three Months Ended | Six Months Ended
In millions | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2022 | Jun 30, 2021
Operating lease cost | $ | 99 |  | $ | 118 |  | $ | 196 |  | $ | 239 |
Finance lease cost |  |  |  |
Amortization of right-of-use assets - finance | $ | 26 |  | $ | 19 |  | $ | 52 |  | $ | 34 |
Interest on lease liabilities - finance | 9 |  | 6 |  | 17 |  | 13 |
Total finance lease cost | $ | 35 |  | $ | 25 |  | $ | 69 |  | $ | 47 |
Short-term lease cost | 66 |  | 71 |  | 125 |  | 120 |
Variable lease cost | 133 |  | 79 |  | 248 |  | 150 |
Sublease income | (3) |  | (1) |  | (6) |  | (3) |
Total lease cost | $ | 330 |  | $ | 292 |  | $ | 632 |  | $ | 553 |
The following table provides supplemental cash flow and other information related to leases:
Other Lease Information | Six Months Ended
In millions | Jun 30, 2022 | Jun 30, 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows for operating leases | $ | 196 |  | $ | 245 |
Operating cash flows for finance leases | $ | 17 |  | $ | 13 |
Financing cash flows for finance leases | $ | 53 |  | $ | 29 |
Right-of-use assets obtained in exchange for lease obligations: |  |
Operating leases | $ | 37 |  | $ | 57 |
Finance leases | $ | 27 |  | $ | 72 |
The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021:
Lease Position | Balance Sheet Classification | Jun 30, 2022 | Dec 31, 2021
In millions
Assets |  |  |
Operating lease assets | Operating lease right-of-use assets | $ | 1,272 |  | $ | 1,412 |
Finance lease assets | Property | 1,145 |  | 1,158 |
Finance lease amortization | Accumulated depreciation | (395) |  | (368) |
Total lease assets |  | $ | 2,022 |  | $ | 2,202 |
Liabilities |  |  |
Current |  |  |
Operating | Operating lease liabilities - current | $ | 290 |  | $ | 314 |
Finance | Long-term debt due within one year | 107 |  | 106 |
Noncurrent |  |  |
Operating | Operating lease liabilities - noncurrent | 1,043 |  | 1,149 |
Finance | Long-Term Debt | 719 |  | 763 |
Total lease liabilities |  | $ | 2,159 |  | $ | 2,332 |
The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at June 30, 2022 and December 31, 2021 are provided below:
Lease Term and Discount Rate | Jun 30, 2022 | Dec 31, 2021
Weighted-average remaining lease term |  |
Operating leases | 7.8 years | 7.9 years
Finance leases | 11.4 years | 11.8 years
Weighted-average discount rate |  |
Operating leases | 4.04 | % | 3.72 | %
Finance leases | 4.19 | % | 4.17 | %
The following table provides the maturities of lease liabilities at June 30, 2022:
Maturities of Lease Liabilities | Jun 30, 2022
In millions | Operating Leases | Finance Leases
2022 | $ | 179 |  | $ | 71 |
2023 | 289 |  | 164 |
2024 | 225 |  | 106 |
2025 | 183 |  | 76 |
2026 | 148 |  | 69 |
2027 and thereafter | 567 |  | 551 |
Total future undiscounted lease payments | $ | 1,591 |  | $ | 1,037 |
Less: Imputed interest | 258 |  | 211 |
Total present value of lease liabilities | $ | 1,333 |  | $ | 826 |
At June 30, 2022, Dow had additional leases of approximately $91 million, primarily for equipment, which had not yet commenced. These leases are expected to commence in 2022 and 2025, with lease terms of up to 16 years. Dow provides guarantees related to certain leased assets, specifying the residual value that will be available to the lessor at lease termination through the sale of the assets to the lessee or third parties. The following table provides a summary of the final expiration, maximum future payments and recorded liability included in the consolidated balance sheets for residual value guarantees at June 30, 2022 and December 31, 2021. The lease agreements do not contain any material restrictive covenants.
Lease Guarantees | Jun 30, 2022 | Dec 31, 2021
In millions | Final Expiration | Maximum Future Payments | Recorded Liability | Final Expiration | Maximum Future Payments | Recorded Liability
Residual value guarantees | 2031 | $ | 259 |  | $ | — |  | 2031 | $ | 280 |  | $ | — |

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