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Leases
 12 Months Ended
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)202220212020
Operating lease cost$170 $161 $151 
Short-term lease cost51 50 36 
Variable lease cost22 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)20222021
Operating leases:
Operating lease assets$719 $697 
Short-term operating lease liabilities$107 $107 
Operating lease liabilities606 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 debt158 180 
Total finance lease liabilities
$214 $237 
Weighted-average remaining lease term:
Operating leases
8 years9 years
Finance leases
6 years6 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)202220212020
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 LeasesOperating Leases
2023$59 $137 
202456 134 
202539 106 
202631 91 
202719 78 
Thereafter20 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)202220212020
Operating lease cost$170 $161 $151 
Short-term lease cost51 50 36 
Variable lease cost22 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)20222021
Operating leases:
Operating lease assets$719 $697 
Short-term operating lease liabilities$107 $107 
Operating lease liabilities606 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 debt158 180 
Total finance lease liabilities
$214 $237 
Weighted-average remaining lease term:
Operating leases
8 years9 years
Finance leases
6 years6 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)202220212020
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 LeasesOperating Leases
2023$59 $137 
202456 134 
202539 106 
202631 91 
202719 78 
Thereafter20 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.