Leases (Tables)

12 Months Ended

Dec. 31, 2023

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	—