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Leases
6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Note 5. Leases

We have operating leases primarily for our corporate offices, customer service centers and engineering and technology campuses. Our leases have remaining lease terms ranging from less than one year to 12 years, some of which include options to extend the leases for up to five years.

The weighted-average remaining lease term and weighted-average discount rate related to our operating leases are as follows:

As of

June 30,

December 31,

2023

2022

Weighted-average remaining lease term (years)

9

9

Weighted-average discount rate

6.4

%

6.3

%

We recognized operating lease expense of $1 million for each of the three months ended June 30, 2023 and 2022 and $2 million for each of the six months ended June 30, 2023 and 2022. These expenses are included in selling and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income.

Supplemental balance sheet information related to our operating lease liabilities is as follows:

As of

June 30,

December 31,

(In millions)

2023

2022

Other accrued liabilities

$

3

$

3

Operating lease liabilities

16

18

Total operating lease liabilities

$

20

$

21

Supplemental cash flow information related to our operating leases is as follows:

Six Months Ended

June 30,

(In millions)

2023

2022

Cash paid on operating lease liabilities

$

2

$

3

The following table presents the maturities of our operating lease liabilities as of June 30, 2023:

(In millions)

2023 (remainder)(1)

$

2

2024(1)

2

2025(1)

2

2026(1)

2

2027

3

2028

2

Thereafter

10

Total future minimum lease payments(1)

22

Less imputed interest

(6)

Total operating lease liabilities(1)

$

16

_____________________________

(1)Amount is presented net of future sublease income totaling $3 million, which relates to the remainder of the year ending December 31, 2023 and the years ending December 31, 2024 through December 31, 2026.

Sublease of Prior Corporate Headquarters

On August 10, 2022, we subleased our prior corporate headquarters facility in Memphis, Tennessee. As a result of us exiting the facility on June 27, 2022, we incurred a non-cash impairment charge of $11 million for the three and six months ended June 30, 2022.