Less: Interest

  
THE CHARLES SCHWAB CORPORATIONNotes to Consolidated Financial Statements(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)  
14.    Leases  
The following table details the amounts and locations of operating lease assets and liabilities on the consolidated balance sheet:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, |  | 2021 |  | 2020 |
| Lease assets: | Balance Sheet Classification |  |  |  |
| Operating lease ROU assets | Other assets | $ | 842  |  |  | $ | 937  |  |
| Lease liabilities: |  |  |  |  |
| Operating lease liabilities | Accrued expenses and other liabilities | $ | 932  |  |  | $ | 1,033  |  |

  
The Company had immaterial sublease income for the years ended December 31, 2021 and 2020.  
The components of lease expense are as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year Ended December 31, | 2021 |  | 2020 |  | 2019 |
| Lease Cost |  |  |  |  |  |
| Operating lease cost (1) | $ | 220  |  |  | $ | 166  |  |  | $ | 137  |  |
| Variable lease cost (2) | 48  |  |  | 34  |  |  | 34  |  |

(1) Includes an immaterial amount attributable to short-term leases.(2) Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that is reflected in the lease liability and what is actually incurred.  
The following tables present supplemental operating lease information:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| December 31, | 2021 |  | 2020 |
| Lease Term and Discount Rate |  |  |  |
| Weighted-average remaining lease term (years) | 6.63 |  | 7.02 |
| Weighted-average discount rate | 2.48  | % |  | 2.86  | % |

  


|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Maturity of Lease Liabilities | Operating Leases (1) |
| 2022 | $ | 191  |  |
| 2023 | 185  |  |
| 2024 | 149  |  |
| 2025 | 128  |  |
| 2026 | 103  |  |
| Thereafter | 257  |  |
| Total lease payments | 1,013  |  |
| Less: Interest | 81  |  |
| Present value of lease liabilities | $ | 932  |  |

(1) Operating lease payments exclude $40 million of legally binding minimum lease payments for leases signed, but not yet commenced. These leases will commence between 2022 and 2023 with lease terms of five years to 15 years.   
The Company had finance lease ROU assets included in equipment, office facilities, and property – net of $93 million and finance lease liabilities of $94 million included in long-term debt on the consolidated balance sheet as of December 31, 2021. Finance leases were immaterial as of December 31, 2020.  
  
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