The Company leases real estate, machinery, equipment and vehicles under agreements with contractual periods ranging from one month to 12 years. Leases generally contain extension or renewal options, and some leases contain termination options. After considering all relevant economic and financial factors, the Company includes periods covered by renewal or extension options that are reasonably certain to be exercised in the lease term and excludes periods covered by termination options that are reasonably certain to be exercised from the lease term. The Company determines whether a contractual arrangement is or contains a lease at inception.

The Company has lease agreements with lease and non-lease components and has elected to utilize the practical expedient to account for lease and non-lease components together as a single combined lease component, with the exception of leases of real estate which is comprised of land and buildings. For leases of land and buildings, the Company accounts for each component separately based on the relative estimated standalone price of each component. At lease commencement, the Company measures the lease liability at the present value of lease payments not yet paid. All variable payments that are not based on a market rate or an index (e.g., the Consumer Price Index) are excluded from the measurement of the lease liability and instead are recognized as expense when paid. Because the discount rate implicit in the lease is not determinable for most leases, the Company determines the appropriate discount rate using the estimated incremental borrowing rate for the lease based on the information available at lease commencement. Right-of-use assets are measured at the amount of the lease liability, adjusted for prepaid or accrued lease payments, lease incentives, and initial direct costs incurred, as applicable.

Leases that are economically similar to the purchase of an asset are classified as finance leases. The Company’s carrying value of finance leases is not material for all periods reported.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company does not recognize right-of-use assets and lease liabilities for short-term leases with an original lease term of 12 months or less. Instead, expense representing the rent payments is recognized on a straight-line basis over the lease term within “Selling, general, and administrative” in the Consolidated Statement of Operations.

Operating lease assets are recorded net of accumulated amortization. The following table presents the carrying value of operating lease right-of-use assets and lease liabilities recorded within the corresponding line items on the Company’s Consolidated Balance Sheets at December 31, 2020 and 2021 (in millions):


	December 31, 2020		December 31, 2021
Operating lease assets, net	$	80	$	228

Current portion of lease liabilities and other current liabilities	$	18	$	46
Long-term lease liabilities	83		218
Total lease liabilities	$	101	$	264

The following table summarizes the contractual maturities of operating lease liabilities as of December 31, 2021 (in millions):


	Operating Leases
2022	$	54
2023	53
2024	49
2025	44
2026	37
Thereafter	65
Total undiscounted liabilities	302
Less: Present value discount	(38)
Total lease liabilities	$	264

The future minimum lease payments for leases that have not yet commenced are not material at December 31, 2021. The leases will commence in 2022 and 2023, with lease terms ranging from 1 year to 10 years.

Total lease cost for the year ended December 31, 2020 was not material. Total least cost of $43 million for the year ended December 31, 2021 was comprised primarily of operating lease cost and recorded in “Selling, general, and administrative” in the Consolidated Statement s of Operations.

The weighted average remaining lease term and weighted average discount rate for operating leases at December 31, 2020 and 2021 were as follows:


	December 31, 2020		December 31, 2021
Weighted average remaining operating lease term (in years)	5.8		6.1
Weighted average operating lease discount rate	3.8	%	4.0	%

Supplemental cash flow information related to operating leases for the year ended December 31, 2020 and 2021 is as follows (in millions):


	December 31, 2020		December 31, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	11	$	31
Right-of-use assets obtained in exchange for operating lease liabilities (non-cash)	$	87	$	178

Operating lease expense for the year ended December 31, 2019 was not material.