Meritor Acquisition and 2022 Financial Results
Table of Contents
NOTE 7. INVENTORIES
Inventories are stated at the lower of cost or net realizable value. Inventories included the following:
In millions
Finished products
Work-in-process and raw materials
Inventories at FIFO cost
Excess of FIFO over LIFO
Inventories
NOTE 8. PROPERTY, PLANT AND EQUIPMENT
Details of our property, plant and equipment balance were as follows:
NOTE 9. LEASES
In millions
Land and buildings
Machinery, equipment and fixtures
Construction in process
Property, plant and equipment, gross
Less: Accumulated depreciation
Property, plant and equipment, net
December 31,
2022
2021
$
2,917 $
2,538
2,926
2,009
5,843
4,547
(240)
(192)
$
5,603 $
4,355
December 31,
2022
2021
$
2,908 $
2,632
6,598
5,910
1,001
816
10,507
9,358
(4,986)
(4,936)
$
5,521
$
4,422
Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of land, office, distribution, warehousing and manufacturing
facilities. These leases typically range in term from 2 to 50 years and may contain renewal options for periods up to10 years at our discretion. Our equipment lease portfolio
consists primarily of vehicles (including service vehicles), fork trucks and IT equipment. These leases typically range in term from two to three years and may contain renewal
options. Our leases generally do not contain variable lease payments other than (1) certain foreign real estate leases which have payments indexed to inflation and (2) certain
real estate executory costs (such as taxes, insurance and maintenance), which are paid based on actual expenses incurred by the lessor during the year. Our leases generally do
not include residual value guarantees other than our service vehicle fleet, which has a residual guarantee based on a percentage of the original cost declining over the lease term.
The components of our lease cost were as follows:
In millions
Operating lease cost
Finance lease cost
Amortization of right-of-use asset
Interest expense
Short-term lease cost
Variable lease cost
Total lease cost
92
Years ended December 31,
2022
2021
2020
$
160 $
172 $
172
19
16
18
4
4
4
23
18
19
12
11
12
$
218
$
221 $
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