Total Lessor, Operating Lease, Payments to be Received

[Table of Contents](#i59ca7ab3cc784e42904d434b0008a7a9_10)Notes to Consolidated Financial Statements(Dollars in millions, unless otherwise noted)  
Note 11 — LeasesCash paid for amounts included in the measurement of operating lease liabilities was $162 million, $204 million, and $206 million for the years ended December 31, 2021, 2020, and 2019, respectively.ROU assets obtained in exchange for operating lease obligations were $(2) million, $3 million, and $14 million for the years ended December 31, 2021, 2020, and 2019, respectively.Lessor We have operating leases for which we are the lessor. The significant types of leases are contracted generation and real estate. The following table outlines other terms and conditions of the lease agreements as of December 31, 2021.

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  | Years |
| Remaining lease terms | 1-18 |
| Options to extend the term | 1-5 |
|  |  |

The components of lease income were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Years Ended December 31, |
|  | 2021 |  | 2020 |  | 2019 |
| Operating lease income | $ | 47  |  |  | $ | 47  |  |  | $ | 47  |  |
| Variable lease income | 261  |  |  | 282  |  |  | 258  |  |

Future minimum lease payments to be recovered under operating leases as of December 31, 2021 were as follows:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Year | Minimum lease payments to be recovered |
| 2022 | $ | 45  |  |
| 2023 | 45  |  |
| 2024 | 45  |  |
| 2025 | 45  |  |
| 2026 | 45  |  |
| Remaining years | 137  |  |
| Total  | $ | 362  |  |

12. Asset Impairments We evaluate the carrying value of long-lived assets or asset groups for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. Indicators of impairment may include a deteriorating business climate, including, but not limited to, declines in energy prices, condition of the asset, or plans to dispose of a long-lived asset significantly before the end of its useful life. We determine if long-lived assets or asset groups are potentially impaired by comparing the undiscounted expected future cash flows to the carrying value when indicators of impairment exist. When the undiscounted cash flow analysis indicates a long-lived asset or asset group may not be recoverable, the amount of the impairment loss is determined by measuring the excess of the carrying amount of the long-lived asset or asset group over its fair value. The fair value analysis is primarily based on the income approach using significant unobservable inputs (Level 3) including revenue and generation forecasts, projected capital and maintenance expenditures and discount rates. A variation in the assumptions used could lead to a different conclusion regarding the recoverability of an asset or asset group and, thus, could potentially result in material future impairments of our long-lived assets.New England Asset GroupIn the third quarter of 2020, in conjunction with the retirement announcement of Mystic Units 8 and 9, we completed a comprehensive review of the estimated undiscounted future cash flows of the New England asset group and concluded that the estimated undiscounted future cash flows and fair value of the New England asset 118  
  
  

