LOEWS CORP

Note 10. Leases

Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates. Leases, predominantly operating leases, are included in Other assets and Other liabilities on the Consolidated Balance Sheets. The lease agreements do not contain significant residual value guarantees, restrictions or covenants.

Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payments is typically the applicable secured borrowing rate, as most of the leases do not provide an implicit rate. Theoperating lease right of use asset was $302 million and $328 million and theoperating lease liability was $384 million and $397 million at December 31, 2023 and 2022.

Total lease expense was $87 million, $89 million and $92 million for the years ended December 31, 2023, 2022 and 2021 which includes operating lease expense of $58 million, $60 million and $66 million, variable lease expense of $24 million, $26 million and $23 million and short-term lease expense of $5 million, $3 million and $3 million. Cash paid for amounts included in operating lease liabilities was $60 million, $64 million and $65 million for year ended December 31,

2023, 2022 and 2021. Operating lease right of use assets obtained in exchange for lease obligations was $39 million, $118 million and $35 million for the years ended December 31, 2023, 2022 and 2021.

In the fourth quarter of 2023, CNA committed to consolidate some of its offices, which resulted in a $24 million charge within Operating expenses and other on the Consolidated Statement of Operations. The charge primarily relates to the abandonment of certain fixed assets and operating lease right of use assets that are no longer in use.

The table below presents the maturities of lease liabilities:

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating the operating lease asset and liability.