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v3.22.4

Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | Leases Most of our leases are real estate leases. In addition, we lease trucks, trailers and material handling equipment. The components of our lease expense and gain realized on sale-leaseback transactions were as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Operating lease cost |  | $ | 170 |  |  | $ | 161 |  |  | $ | 151 |
Short-term lease cost |  | 51 |  |  | 50 |  |  | 36 |
Variable lease cost |  | 22 |  |  | 19 |  |  | 17 |
Total operating lease cost |  | $ | 243 |  |  | $ | 230 |  |  | $ | 204 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  | $ | 49 |  |  | $ | 51 |  |  | $ | 41 |
Interest on lease liabilities |  | 5 |  |  | 5 |  |  | 5 |
Total finance lease cost |  | $ | 54 |  |  | $ | 56 |  |  | $ | 46 |
Total lease cost |  | $ | 297 |  |  | $ | 286 |  |  | $ | 250 |
Gain recognized on sale-leaseback transactions (1) |  | $ | 40 |  |  | $ | 69 |  |  | $ | 84 |
(1) For the years ended December 31, 2022, 2021 and 2020, we completed multiple sale-leaseback transactions primarily for land and buildings. We received aggregate cash proceeds of $49 million, $96 million and $143 million in 2022, 2021 and 2020, respectively. Gains on sale-leaseback transactions are included in Direct operating expense (exclusive of depreciation and amortization) in our Consolidated Statements of Income. Supplemental balance sheet information related to leases was as follows:
|  | December 31,
(In millions) |  | 2022 |  | 2021
Operating leases: |  |  |  |
Operating lease assets |  | $ | 719 |  |  | $ | 697 |
Short-term operating lease liabilities |  | $ | 107 |  |  | $ | 107 |
Operating lease liabilities |  | 606 |  |  | 596 |
Total operating lease liabilities |  | $ | 713 |  |  | $ | 703 |
Finance leases: |  |  |  |
Property and equipment, gross |  | $ | 414 |  |  | $ | 403 |
Accumulated depreciation |  | (185) |  |  | (156) |
Property and equipment, net |  | $ | 229 |  |  | $ | 247 |
Short-term borrowings and current maturities of long-term debt |  | $ | 56 |  |  | $ | 57 |
Long-term debt |  | 158 |  |  | 180 |
Total finance lease liabilities |  | $ | 214 |  |  | $ | 237 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 8 years |  | 9 years
Finance leases |  | 6 years |  | 6 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 5.01 | % |  | 4.79 | %
Finance leases |  | 2.12 | % |  | 1.98 | %
Supplemental cash flow information related to leases was as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 176 |  |  | $ | 156 |  |  | $ | 154 |
Operating cash flows for finance leases |  | 5 |  |  | 5 |  |  | 5 |
Financing cash flows for finance leases |  | 60 |  |  | 75 |  |  | 59 |
Leased assets obtained in exchange for new lease obligations: |  |  |  |  |  |
Operating leases |  | 191 |  |  | 203 |  |  | 203 |
Finance leases |  | 46 |  |  | 71 |  |  | 46 |
Net operating lease activity, including the reduction of the operating lease asset and the accretion of the operating lease liability, are reflected in Depreciation, amortization and net lease activity on our Consolidated Statements of Cash Flows. Maturities of lease liabilities as of December 31, 2022 were as follows:
(In millions) |  | Finance Leases |  | Operating Leases
2023 |  | $ | 59 |  |  | $ | 137 |
2024 |  | 56 |  |  | 134 |
2025 |  | 39 |  |  | 106 |
2026 |  | 31 |  |  | 91 |
2027 |  | 19 |  |  | 78 |
Thereafter |  | 20 |  |  | 345 |
Total lease payments |  | 224 |  |  | 891 |
Less: interest |  | (10) |  |  | (178) |
Present value of lease liabilities |  | $ | 214 |  |  | $ | 713 |
As of December 31, 2022, we had additional operating leases that have not yet commenced with future undiscounted lease payments of $52 million. These operating leases will commence in 2023 with initial lease terms of 9 years to 15 years.
Leases | Leases Most of our leases are real estate leases. In addition, we lease trucks, trailers and material handling equipment. The components of our lease expense and gain realized on sale-leaseback transactions were as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Operating lease cost |  | $ | 170 |  |  | $ | 161 |  |  | $ | 151 |
Short-term lease cost |  | 51 |  |  | 50 |  |  | 36 |
Variable lease cost |  | 22 |  |  | 19 |  |  | 17 |
Total operating lease cost |  | $ | 243 |  |  | $ | 230 |  |  | $ | 204 |
Finance lease cost: |  |  |  |  |  |
Amortization of leased assets |  | $ | 49 |  |  | $ | 51 |  |  | $ | 41 |
Interest on lease liabilities |  | 5 |  |  | 5 |  |  | 5 |
Total finance lease cost |  | $ | 54 |  |  | $ | 56 |  |  | $ | 46 |
Total lease cost |  | $ | 297 |  |  | $ | 286 |  |  | $ | 250 |
Gain recognized on sale-leaseback transactions (1) |  | $ | 40 |  |  | $ | 69 |  |  | $ | 84 |
(1) For the years ended December 31, 2022, 2021 and 2020, we completed multiple sale-leaseback transactions primarily for land and buildings. We received aggregate cash proceeds of $49 million, $96 million and $143 million in 2022, 2021 and 2020, respectively. Gains on sale-leaseback transactions are included in Direct operating expense (exclusive of depreciation and amortization) in our Consolidated Statements of Income. Supplemental balance sheet information related to leases was as follows:
|  | December 31,
(In millions) |  | 2022 |  | 2021
Operating leases: |  |  |  |
Operating lease assets |  | $ | 719 |  |  | $ | 697 |
Short-term operating lease liabilities |  | $ | 107 |  |  | $ | 107 |
Operating lease liabilities |  | 606 |  |  | 596 |
Total operating lease liabilities |  | $ | 713 |  |  | $ | 703 |
Finance leases: |  |  |  |
Property and equipment, gross |  | $ | 414 |  |  | $ | 403 |
Accumulated depreciation |  | (185) |  |  | (156) |
Property and equipment, net |  | $ | 229 |  |  | $ | 247 |
Short-term borrowings and current maturities of long-term debt |  | $ | 56 |  |  | $ | 57 |
Long-term debt |  | 158 |  |  | 180 |
Total finance lease liabilities |  | $ | 214 |  |  | $ | 237 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 8 years |  | 9 years
Finance leases |  | 6 years |  | 6 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 5.01 | % |  | 4.79 | %
Finance leases |  | 2.12 | % |  | 1.98 | %
Supplemental cash flow information related to leases was as follows:
|  | Years Ended December 31,
(In millions) |  | 2022 |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 176 |  |  | $ | 156 |  |  | $ | 154 |
Operating cash flows for finance leases |  | 5 |  |  | 5 |  |  | 5 |
Financing cash flows for finance leases |  | 60 |  |  | 75 |  |  | 59 |
Leased assets obtained in exchange for new lease obligations: |  |  |  |  |  |
Operating leases |  | 191 |  |  | 203 |  |  | 203 |
Finance leases |  | 46 |  |  | 71 |  |  | 46 |
Net operating lease activity, including the reduction of the operating lease asset and the accretion of the operating lease liability, are reflected in Depreciation, amortization and net lease activity on our Consolidated Statements of Cash Flows. Maturities of lease liabilities as of December 31, 2022 were as follows:
(In millions) |  | Finance Leases |  | Operating Leases
2023 |  | $ | 59 |  |  | $ | 137 |
2024 |  | 56 |  |  | 134 |
2025 |  | 39 |  |  | 106 |
2026 |  | 31 |  |  | 91 |
2027 |  | 19 |  |  | 78 |
Thereafter |  | 20 |  |  | 345 |
Total lease payments |  | 224 |  |  | 891 |
Less: interest |  | (10) |  |  | (178) |
Present value of lease liabilities |  | $ | 214 |  |  | $ | 713 |
As of December 31, 2022, we had additional operating leases that have not yet commenced with future undiscounted lease payments of $52 million. These operating leases will commence in 2023 with initial lease terms of 9 years to 15 years.

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