WEYERHAEUSER CO Leases Disclosure
NOTE 16: LEASES
The majority of our operating leases are related to our office and warehouse space, and the majority of our financing leases are related to vehicles and forklifts. Our leases have remaining lease terms of approximately 1 year to 25 years. Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments.
Lease Expense
DOLLAR AMOUNTS IN MILLIONS |
|
|
|
|
|
|
|
|
|
|
|||
|
|
2023 |
|
|
|
2022 |
|
|
2021 |
|
|||
Operating lease costs |
|
$ |
22 |
|
|
|
$ |
21 |
|
|
$ |
20 |
|
Financing lease costs |
|
|
5 |
|
|
|
|
7 |
|
|
|
9 |
|
Total lease costs |
|
$ |
27 |
|
|
|
$ |
28 |
|
|
$ |
29 |
|
Supplemental Cash Flow Information
DOLLAR AMOUNTS IN MILLIONS |
|
|
|
|
|
|
|
|
|
|
|||
|
|
2023 |
|
|
|
2022 |
|
|
2021 |
|
|||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|||
Operating cash flows for operating leases |
|
$ |
22 |
|
|
|
$ |
21 |
|
|
$ |
19 |
|
Financing cash flows for financing leases(1) |
|
$ |
6 |
|
|
|
$ |
8 |
|
|
$ |
11 |
|
ROU assets obtained in exchange for new (modified) lease liabilities: |
|
|
|
|
|
|
|
|
|
|
|||
Operating leases |
|
$ |
14 |
|
|
|
$ |
18 |
|
|
$ |
9 |
|
Financing leases |
|
$ |
6 |
|
|
|
$ |
3 |
|
|
$ |
4 |
|
Supplemental Balance Sheet Information Related to Leases
DOLLAR AMOUNTS IN MILLIONS |
|
|
|
|
|
|
|
|
||
|
|
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
||
LEASES |
|
BALANCE SHEET CLASSIFICATION |
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
|
||
Operating lease ROU assets |
|
|
$ |
105 |
|
|
$ |
102 |
|
|
Financing lease ROU assets |
|
|
|
11 |
|
|
|
9 |
|
|
Total leased assets |
|
|
|
$ |
116 |
|
|
$ |
111 |
|
Liabilities |
|
|
|
|
|
|
|
|
||
Current: |
|
|
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
$ |
15 |
|
|
$ |
17 |
|
|
Financing lease liabilities |
|
|
|
4 |
|
|
|
5 |
|
|
Noncurrent: |
|
|
|
|
|
|
|
|
||
Operating lease liabilities |
|
|
|
96 |
|
|
|
91 |
|
|
Financing lease liabilities |
|
|
|
7 |
|
|
|
5 |
|
|
Total lease liabilities |
|
|
|
$ |
122 |
|
|
$ |
118 |
|
Weighted Average Remaining Lease Term
|
|
|
|
|
|
|
|
|
DECEMBER 31, |
|
|
DECEMBER 31, |
|
Operating leases |
|
7 years |
|
|
8 years |
|
Financing leases |
|
4 years |
|
|
3 years |
|
Weighted Average Discount Rate
|
|
|
|
|
|
|
|
|
||
|
|
DECEMBER 31, |
|
|
|
DECEMBER 31, |
|
|
||
Operating leases |
|
|
4.2 |
% |
|
|
|
3.9 |
% |
|
Financing leases |
|
|
4.8 |
% |
|
|
|
2.9 |
% |
|
Maturities of Lease Liabilities as of December 31, 2023
DOLLAR AMOUNTS IN MILLIONS |
|
|
|
|
|
|
||
|
|
OPERATING |
|
|
FINANCING |
|
||
2024 |
|
$ |
20 |
|
|
$ |
4 |
|
2025 |
|
|
19 |
|
|
|
3 |
|
2026 |
|
|
19 |
|
|
|
2 |
|
2027 |
|
|
16 |
|
|
|
2 |
|
2028 |
|
|
14 |
|
|
|
1 |
|
Thereafter |
|
|
41 |
|
|
|
— |
|
Total lease payments |
|
|
129 |
|
|
|
12 |
|
Less: interest |
|
|
(18 |
) |
|
|
(1 |
) |
Total present value of lease liabilities |
|
$ |
111 |
|
|
$ |
11 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 16, 2024 | Showing above |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 14, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.