Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Lessee Lease in Statement of Financial Position
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 2023 2022
Right-of-use assets—Operating Operating lease assets $ 81  $ 89 
Right-of-use assets—Financing Property, plant and equipment, net of accumulated depreciation 17  21 
Total right-of-use assets $ 98  $ 110 
Current operating lease liabilities Other current liabilities 10  10 
Current finance lease liabilities Other current liabilities 4  4 
Non-current operating lease liabilities Operating lease liabilities 71  80 
Non-current finance lease liabilities Finance lease liabilities 14  18 
Total lease liabilities $ 99  112 
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
 2023 2022 2021
Operating lease cost (1) Operating costs and expenses (2) $ 13  $ 13  $ 12 
Finance lease cost:
Amortization of right-of-use assets Depreciation and amortization expense 4  2  — 
Interest on lease liabilities Interest expense, net of capitalized interest 1  —  — 
Total lease cost $ 18  $ 15  $ 12 
(1)Includes $1 million of variable lease costs incurred during each of the years ended December 31, 2023, 2022 and 2021, 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, 2023 are as follows (in millions): 
Years Ending December 31, Operating Leases Finance Leases
2024 $ 12  $ 5 
2025 12  5 
2026 12  5 
2027 12  5 
2028 3  — 
Thereafter 92  — 
Total lease payments 143  20 
Less: Interest (62) (2)
Present value of lease liabilities $ 81  $ 18 
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, 2023 December 31, 2022
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted-average remaining lease term (in years) 24.6 4.1 23.8 5.1
Weighted-average discount rate 3.9  % 4.8  % 3.8  % 4.8  %

The following table includes other quantitative information for our operating and finance leases (in millions):
Year Ended December 31,
2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases 12  10  11 
Right-of-use assets obtained in exchange for operating lease liabilities 1  —  7 
Right-of-use assets obtained in exchange for finance lease liabilities —  23  —