Leases (Notes)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

LEASES

We have operating and finance leases primarily for corporate offices, manufacturing facilities, warehouses, vehicles, and equipment. Our leases have remaining lease terms up to 13 years, some of which may include one or more renewal options with terms to extend the lease for up to an additional 20 years, and some of which may include options to terminate the leases prior to their expiration.

The components of lease cost included in income from continuing operations were as follows, in millions:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	39
Short-term lease cost	2		5
Variable lease cost	1		2
Finance lease cost:
Amortization of right-of-use assets	1		2
Interest on lease liabilities	—		1

Supplemental cash flow information related to leases was as follows, in millions:

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	43
Operating cash flows for finance leases	1
Financing cash flows for finance leases	2
ROU assets obtained in exchange for new lease obligations:
Operating leases	$	20
Finance leases	—

Certain other information related to leases was as follows:

	At September 30, 2019
Weighted-average remaining lease term:
Operating leases	10 years
Finance leases	10 years
Weighted-average discount rate:
Operating leases	4.6	%
Finance leases	3.5	%

Supplemental balance sheet information related to leases was as follows, in millions:

	At September 30, 2019
	Operating Leases		Finance Leases
Property and equipment, net	$	—	$	35
Notes payable	—		7
Accrued liabilities	38		—
Long-term debt	—		28
Other liabilities	168		—

Gross ROU assets under finance leases recorded within property and equipment, net were $47 million, and accumulated amortization associated with these leases was $12 million, at September 30, 2019.

E. LEASES (Concluded)    

At September 30, 2019, future maturities of lease liabilities (under ASC 842) were as follows, in millions:

	Operating Leases			Finance Leases
Year ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	11		$	6
2020	45			3
2021	39			3
2022	31			3
2023	21			4
Thereafter	114			23
Total lease payments	261			42
Less: imputed interest	(55		)	(7		)
Total	$	206		$	35

At December 31, 2018, future minimum operating lease payments (under ASC 840), including discontinued operations, were as follows, in millions: 2019 – $55 million; 2020 – $47 million; 2021 – $40 million; 2022 – $30 million; 2023 – $20 million; 2024 and beyond – $99 million.

Leases

LEASES

We have operating and finance leases primarily for corporate offices, manufacturing facilities, warehouses, vehicles, and equipment. Our leases have remaining lease terms up to 13 years, some of which may include one or more renewal options with terms to extend the lease for up to an additional 20 years, and some of which may include options to terminate the leases prior to their expiration.

The components of lease cost included in income from continuing operations were as follows, in millions:

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	13	$	39
Short-term lease cost	2		5
Variable lease cost	1		2
Finance lease cost:
Amortization of right-of-use assets	1		2
Interest on lease liabilities	—		1

Supplemental cash flow information related to leases was as follows, in millions:

	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	43
Operating cash flows for finance leases	1
Financing cash flows for finance leases	2
ROU assets obtained in exchange for new lease obligations:
Operating leases	$	20
Finance leases	—

Certain other information related to leases was as follows:

	At September 30, 2019
Weighted-average remaining lease term:
Operating leases	10 years
Finance leases	10 years
Weighted-average discount rate:
Operating leases	4.6	%
Finance leases	3.5	%

Supplemental balance sheet information related to leases was as follows, in millions:

	At September 30, 2019
	Operating Leases		Finance Leases
Property and equipment, net	$	—	$	35
Notes payable	—		7
Accrued liabilities	38		—
Long-term debt	—		28
Other liabilities	168		—

Gross ROU assets under finance leases recorded within property and equipment, net were $47 million, and accumulated amortization associated with these leases was $12 million, at September 30, 2019.

E. LEASES (Concluded)    

At September 30, 2019, future maturities of lease liabilities (under ASC 842) were as follows, in millions:

	Operating Leases			Finance Leases
Year ending December 31,
2019 (excluding the nine months ended September 30, 2019)	$	11		$	6
2020	45			3
2021	39			3
2022	31			3
2023	21			4
Thereafter	114			23
Total lease payments	261			42
Less: imputed interest	(55		)	(7		)
Total	$	206		$	35

At December 31, 2018, future minimum operating lease payments (under ASC 840), including discontinued operations, were as follows, in millions: 2019 – $55 million; 2020 – $47 million; 2021 – $40 million; 2022 – $30 million; 2023 – $20 million; 2024 and beyond – $99 million.