Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

7.Leases

Corning has operating and finance leases for real estate, vehicles, and equipment.

The following table shows components of lease expense (in millions):

	Year ended December 31,
	2020		2019
Financing:
Depreciation of right-of-use assets	$	15	$	11
Interest on lease liabilities		7		12
Total financing lease expense	$	22	$	23
Operating lease expense	$	133	$	110
Variable lease expense		41		38
Short-term lease expense		4		5
Total lease expense	$	200	$	176

Total rental expense for operating leases of $156 million was recorded in the year ended 2018 and accounted for under the previous leasing standard.

The following table shows components of cash paid for amounts included in the measurement of lease liabilities (in millions):

	December 31,
	2020		2019
Financing:
Principal	$	10	$	6
Interest		7		12
Total financing lease payments	$	17	$	18
Operating lease payments	$	121	$	105
Total lease payments	$	138	$	123

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2020		2019
Operating Leases:
Operating lease right-of-use assets, net (1)	$	680	$	504
Other current liabilities	$	96	$	62
Operating lease liabilities (2)		633		450
Total operating lease liabilities	$	729	$	512
Finance Leases:
Property and equipment, at cost	$	184	$	294
Accumulated depreciation		(27)		(52)
Property and equipment, net	$	157	$	242
Current portion of long-term debt	$	10	$	9
Long-term debt		163		271
Total finance lease liabilities	$	173	$	280

(1)Included in other assets.

(2)Included in other liabilities.

The weighted average remaining lease terms for operating and financing leases are 12.5 years and 15.5 years, respectively. The weighted average discount rates for operating and financing leases are 3.9% and 4.7%, respectively.

As of December 31, 2020, maturities of lease liabilities are as follows (in millions):

		2021		2022		2023		2024		2025		After 2025		Gross Total		Imputed Discount		Total
Operating leases	$	141	$	125	$	114	$	102	$	92	$	733	$	1,307	$	(578)	$	729
Financing leases		13		16		21		24		12		169		255		(82)		173

As of December 31, 2020, Corning had additional operating leases, primarily for new production facilities, that have not yet commenced or been recorded, of approximately $138 million on an undiscounted basis. These operating leases will commence in fiscal year 2021 with lease terms of 20 years.