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LEASES (Notes)
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block]
LEASES
Operating lease ROU assets are included in "Operating lease right-of-use assets" and finance lease ROU assets are included in "Net property" in the consolidated balance sheets. With respect to lease liabilities, operating lease liabilities are included in "Operating lease liabilities - current" and "Operating lease liabilities - noncurrent," and finance lease liabilities are included in "Long-term debt due within one year" and "Long-Term Debt" in the consolidated balance sheets.

The Corporation routinely leases sales and administrative offices, product and utility production facilities, warehouses and tanks for product storage, motor vehicles, railcars, computers, office machines and equipment. Some leases contain renewal provisions, purchase options and escalation clauses. The terms for these leased assets vary depending on the lease agreement. These leased assets have remaining lease terms that currently range from 1 to 11 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants. See Notes 1 and 2 for additional information on leases.

The components of lease cost for operating and finance leases for the three months ended March 31, 2019 were as follows:

Lease Cost
Three Months Ended
 Mar 31, 2019
In millions
Operating lease cost
$
6

Short-term lease cost
7

Total lease cost
$
13



The following table provides supplemental cash flow information related to leases:

Other Lease Information
Three Months Ended
 Mar 31, 2019
In millions
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
6



The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at March 31, 2019:

Lease Position
Balance Sheet Classification
Mar 31, 2019
In millions
Right-of-use assets obtained in exchange for lease obligations:
 
 
Operating leases 1
 
$
104

Assets
 
 
Operating lease assets
Operating lease right-of-use assets
$
100

Finance lease assets
Property
12

Finance lease amortization
Accumulated depreciation
(5
)
Total lease assets
 
$
107

Liabilities
 
 
Current
 
 
Operating
Operating lease liabilities - current
$
18

Finance
Long-term debt due within one year
1

Noncurrent
 
 
Operating
Operating lease liabilities - noncurrent
82

Finance
Long-Term Debt
6

Total lease liabilities
 
$
107

1.
Includes $99 million related to the adoption of Topic 842. See Note 2 for additional information.

Lease Term and Discount Rate
Mar 31, 2019
Weighted-average remaining lease term
 
Operating leases
6.9 years

Finance leases
5.3 years

Weighted-average discount rate
 
Operating leases
4.28
%
Finance leases
4.22
%


The following table provides the maturities of lease liabilities at March 31, 2019:

Maturities of Lease Liabilities at Mar 31, 2019
Operating Leases
Finance Leases
In millions
2019
$
16

$
1

2020
19

1

2021
15

1

2022
14

2

2023
13

2

2024 and thereafter
37

1

Total future undiscounted lease payments
$
114

$
8

Less imputed interest
14

1

Total present value of lease liabilities
$
100

$
7



At March 31, 2019, the Corporation had an additional lease of approximately $5 million for a rail yard, which has not yet commenced. This lease is expected to commence in late 2019, with a lease term of 10 years.

Future minimum lease payments for leases accounted for under ASC 840, "Leases," with remaining non-cancelable terms in excess of one year were as follows at December 31, 2018:

Minimum Lease Commitments at Dec 31, 2018
 
In millions
 
2019
$
18

2020
16

2021
14

2022
13

2023
13

2024 and thereafter
37

Total
$
111