Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Leases, Balance Sheet Location
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):
December 31,
Consolidated Balance Sheets Location 2022 2021
Right-of-use assets—Operating Operating lease assets $ 89  $ 98 
Right-of-use assets—Financing Property, plant and equipment, net of accumulated depreciation 21  — 
Total right-of-use assets $ 94  $ 98 
Current operating lease liabilities Current operating lease liabilities 10  8 
Current finance lease liabilities Other current liabilities 4  — 
Non-current operating lease liabilities Operating lease liabilities 80  89 
Non-current finance lease liabilities Finance lease liabilities 18  — 
Total lease liabilities $ 112  97 
Schedule of Lease Cost, Income Statement Location
The following table shows the classification and location of our lease costs on our Consolidated Statements of Income (in millions):
Year Ended December 31,
Consolidated Statements of Income Location
 2022 2021 2020
Operating lease cost (1) Operating costs and expenses (2) $ 13  $ 12  $ 12 
Finance lease cost:
Amortization of right-of-use assets Depreciation and amortization expense 2  —  — 
Total lease cost $ 15  $ 12  $ 12 
(1)Includes $1 million of variable lease costs incurred during each of the years ended December 31, 2022, 2021 and 2020, respectively.
(2)Presented in cost of sales, operating and maintenance expense, general and administrative expense or general and administrative expense—affiliate consistent with the nature of the asset under lease.
Schedule of Maturity of Lease Liabilities
Future annual minimum lease payments for operating and finance leases as of December 31, 2022 are as follows (in millions): 
Years Ending December 31, Operating Leases Finance Leases
2023 $ 12  $ 6 
2024 12  5 
2025 12  5 
2026 12  5 
2027 12  5 
Thereafter 94  — 
Total lease payments 154  26 
Less: Interest (64) (4)
Present value of lease liabilities $ 90  $ 22 
Lessee, Other Quantitative Information
The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases:
December 31, 2022 December 31, 2021
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted-average remaining lease term (in years) 23.8 5.1 23.4 0.0
Weighted-average discount rate 3.8  % 4.8  % 3.6  % —  %

The following table includes other quantitative information for our operating and finance leases (in millions):
Year Ended December 31,
2022 2021 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases 10  11  11 
Leased assets obtained in exchange for new operating lease liabilities —  7  11 
Right-of-use assets obtained in exchange for finance lease liabilities 23  —  —