Leases

9 Months Ended

Sep. 30, 2019

Leases

We have entered into leases for certain facilities, vehicles, material handling and other equipment. Our operating leases have remaining contractual terms up to 13 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year. Our operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our operating lease costs are primarily related to facility leases for inventory warehousing and administration offices, and our finance leases are immaterial.

Operating Lease Cost



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019		Income Statement Classification
Lease cost	$	41	$	120	Cost of products sold, Marketing, research and general expenses
Variable lease cost^(a)	30		102		Cost of products sold, Marketing, research and general expenses
Total lease cost	$	71	$	222

(a) Includes short-term leases, which are immaterial.

Operating Lease Assets and Liabilities



	September 30, 2019		Balance Sheet Classification
Lease assets	$	399	Other Assets

Current lease liabilities	$	133	Accrued expenses and other current liabilities
Noncurrent lease liabilities	275		Other Liabilities
Total lease liabilities	$	408

Maturity of Operating Lease Liabilities



	September 30, 2019
2019	$	40
2020	138
2021	95
2022	66
2023	45
Thereafter	75
Total lease payments	459
Less imputed interest	51
Present value of lease liabilities	$	408

As of September 30, 2019, our operating leases have a weighted-average remaining lease term of 4.3 years and a weighted-average discount rate of 5.0 percent. Cash paid for amounts included in the measurement of operating lease liabilities was $121 for the nine months ended September 30, 2019.

As of September 30, 2019, we have additional operating leases, primarily for facilities, that have not yet commenced of $105. These operating leases will commence during 2020 with lease terms of up to 10 years.

The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows:



	December 31, 2018
2019	$	160
2020	123
2021	85
2022	57
2023	41
Thereafter	72
Future minimum obligations	$	538