Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

Our global lease portfolio represents leases of real estate, including manufacturing, assembly and office facilities, while the remainder represents leases of personal property, including manufacturing, material handling and IT equipment. Leases with an

initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease costs were insignificant in the nine months ended September 30, 2019. We account for lease components separately from the non-lease components of each lease arrangement.

Our leases generally have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 7 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides a summary of the location and amounts related to finance leases recognized in the consolidated balance sheet.

	Classification	September 30, 2019
Finance lease right-of-use assets	Property, plant and equipment, net	$	42
Finance lease liabilities	Current portion of long-term debt	5
Finance lease liabilities	Long-term debt	25

Components of lease expense —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	37
Finance lease cost:
Amortization of right-of-use assets	$	1	$	2
Interest on lease liabilities	1		1
Total finance lease cost	$	2	$	3

Supplemental cash flow information related to leases —

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12	$	37
Operating cash flows from finance leases	1		1
Financing cash flows from finance leases	1		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	3	$	16
Finance leases	1		13

Supplemental balance sheet information related to leases —

	September 30, 2019
Weighted-average remaining lease term (years):
Operating leases	6
Finance leases	9
Weighted-average discount rate:
Operating leases	6.0	%
Finance leases	4.0	%

Maturities —

	Operating Leases		Finance Leases
Remainder of 2019	$	13	$	1
2020	47		6
2021	39		6
2022	29		5
2023	22		3
Thereafter	58		14
Total lease payments	208		35
Less: interest	31		5
Present value of lease liabilities	$	177	$	30

As of September 30, 2019 we have operating lease payments that have not yet commenced of approximately $8. This lease is expected to commence in December 2019.

Disclosures related to periods prior to adoption of ASU 2016-02 —

Cash obligations under future minimum rental commitments under operating leases as of December 31, 2018 are shown in the table below. Operating lease commitments are primarily related to facilities.

	2019		2020		2021		2022		2023		Thereafter		Total
Lease commitments	$	57	$	41	$	35	$	27	$	21	$	64	$	245