Leases Leases (Notes)

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure [Text Block]

Leases

Lessee Accounting

The Company leases certain transportation equipment, plant equipment, office equipment, land, buildings, and storage facilities. Most leases include options to renew, with renewal terms that can extend the lease term from 1 month to 49 years. Certain leases also include index and non-index escalation clauses and options to purchase the leased property. Leases accounted for as finance leases were immaterial at June 30, 2019.

As an accounting policy election, the Company does not apply the recognition requirements of Topic 842 to short-term leases in all of its underlying asset categories. The Company recognizes short-term lease payments in earnings on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred.

The following table sets forth the amounts relating to the Company’s total lease cost and other information.



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(In millions)
Lease cost:
Operating lease cost	$	73	$	146
Short-term lease cost	24		47
Total lease cost	$	97	$	193

Other information:
Operating lease liability principal payments			$	98
Right-of-use assets obtained in exchange for new operating lease liabilities			$	168

			June 30, 2019
Weighted-average remaining lease term - operating leases (in years)			8
Weighted average discount rate - operating leases			4.7		%

Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities.



	Undiscounted
	Cash Flows
	(In millions)
Remainder of 2019	$	116
2020	200
2021	167
2022	138
2023	101
2024	58
Thereafter	260
Total	1,040

Less interest ⁽¹⁾	183
Lease liability	$	857

⁽¹⁾ Calculated using the implicit rate of the lease, if available, or the incremental borrowing rate that is appropriate for the tenor and geography of the lease.

As of June 30, 2019, the Company had $837 million of right-of-use assets included in Other assets, $189 million of current lease liabilities included in Accrued expenses and other payables, and $668 million of non-current lease liabilities included in Other long-term liabilities in its consolidated balance sheet.