LEASES

12 Months Ended

Dec. 31, 2020

Leases of Lessee Disclosure [Text Block]

LEASESOperating 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 product and utility production facilities, sales and administrative offices, 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 of up to 20 years. The Corporation's lease agreements do not contain any material residual value guarantees or restrictive covenants. See Note 1 for additional information on leases.

The components of lease cost for operating and finance leases for the years ended December 31, 2020 and 2019 were as follows:


Lease Cost	2020		2019
In millions
Operating lease cost	$	20	$	21
Short-term lease cost	22		25
Variable lease cost	8		4

Amortization of right-of-use assets - finance	2		1

Total lease cost	$	52	$	51

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


Other Lease Information	2020		2019
In millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	19	$	21
Financing cash flows for finance leases	$	2	$	1

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at December 31, 2020 and 2019:


Lease Position	Balance Sheet Classification	Dec 31, 2020		Dec 31, 2019
In millions
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 1		$	48	$	105
Finance leases		$	3	$	—
Assets
Operating lease assets	Operating lease right-of-use assets	$	123	$	89
Finance lease assets	Property	15		12
Finance lease amortization	Accumulated depreciation	(8)		(6)
Total lease assets		$	130	$	95
Liabilities
Current
Operating	Operating lease liabilities - current	$	19	$	16
Finance	Long-term debt due within one year	2		1
Noncurrent
Operating	Operating lease liabilities - noncurrent	105		74
Finance	Long-Term Debt	5		5
Total lease liabilities		$	131	$	96

1.Includes $99 million for the year ended December 31, 2019 related to the adoption of Topic 842.

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at December 31, 2020 and 2019 are provided below:


Lease Term and Discount Rate	Dec 31, 2020		Dec 31, 2019
Weighted-average remaining lease term
Operating leases	7.5 years		6.3 years
Finance leases	3.4 years		4.5 years
Weighted-average discount rate
Operating leases	3.28	%	4.13	%
Finance leases	3.62	%	4.22	%

The following table provides the maturities of lease liabilities at December 31, 2020:


Maturities of Lease Liabilities	Dec 31, 2020
In millions	Operating Leases		Finance Leases
2021	$	23	$	2
2022	22		2
2023	20		2
2024	19		1
2025	18		—
2026 and thereafter	38		—
Total future undiscounted lease payments	$	140	$	7
Less: Imputed interest	16		—
Total present value of lease liabilities	$	124	$	7

At December 31, 2020, the Corporation had additional leases of approximately $1 million for equipment which have not yet commenced. These leases are expected to commence in 2021 and 2022, with lease terms of 2 years.