Leases

12 Months Ended

Dec. 31, 2020

The Company adopted ASU No. 2016-02 “Leases (Topic 842)” on January 1, 2019, resulting in the recognition of right-of-use assets of $458 and liabilities of $574. The Company enters into leases for land, office space, warehouses and equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options. As the Company’s leases typically do not contain a readily determinable implicit rate, the Company determines the present value of the lease liability using its incremental borrowing rate at the lease commencement date.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of December 31, 2020 and 2019.

As of December 31, 2020 and 2019, the Company’s right-of use assets and liabilities for operating leases were as follows:


	2020		2019
Other assets	$	521	$	502

Other accruals	$	137	$	145
Other liabilities	476		491
Total operating lease liabilities	$	613	$	636

Lease liabilities for operating leases as of December 31, 2020 were as follows:




2021	$	157
2022	133
2023	89
2024	58
2025	46
Thereafter	232
Total lease commitments	$	715
Less: Interest	(102)
Present value of lease liabilities	$	613

The components of the Company’s operating lease cost for the twelve months ended December 31, 2020 and 2019 were as follows:


	2020		2019
Operating lease cost	$	155	$	169
Short-term lease cost	3		5
Variable lease cost	20		30
Total lease cost	$	178	$	204

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and is not reflected on the Company’s Consolidated Balance Sheets. Variable lease costs are comprised of costs, such as the Company’s proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance, that are not included in the lease liability and are recognized in the period in which they are incurred.

Supplemental cash flow information related to operating leases for the twelve months ended December 31, 2020 and 2019 was as follows:

▪Payments against amounts included in the measurement of lease liabilities: $193 and $202, respectively

▪Lease assets obtained in exchange for lease liabilities: $163 and $232, respectively.

As of December 31, 2020 and 2019, the weighted-average remaining lease term for operating leases was 8 and 8 years, respectively, and the weighted-average discount rate for operating leases was 4.2% and 4.1%, respectively.

There were no material operating leases that the Company had entered into and that were yet to commence as of December 31, 2020.