Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

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 December 31, 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.

	Year Ended
	December 31, 2019
	(In millions)
Lease cost:
Operating lease cost	$	275
Short-term lease cost	99
Total lease cost	$	374
Other information:
Operating lease liability principal payments	$	209
Right-of-use assets obtained in exchange for new operating lease liabilities	$	302
	December 31, 2019
Weighted-average remaining lease term - operating leases (in years)	7
Weighted average discount rate - operating leases	4.6		%

Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities as of December 31, 2019.

	Undiscounted
	Cash Flows
	(In millions)
2020	$	251
2021	216
2022	187
2023	143
2024	88
Thereafter	292
Total	1,177
Less interest (1)	(181		)
Lease liability	$	996

⁽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 December 31, 2019, the Company had $971 million of right-of-use assets included in Other assets, $215 million of current lease liabilities included in Accrued expenses and other payables, and $781 million of non-current lease liabilities included in Other long-term liabilities in its consolidated balance sheet.

Below is a tabular disclosure of the future minimum lease payments for non-cancellable operating leases, including time charters of ocean going vessels, with initial or remaining terms in excess of one year as of December 31, 2018:

	Minimum
	Lease Payments
	(In millions)
2019	$	214
2020	149
2021	121
2022	95
2023	52
Thereafter	177
Total minimum lease payments	$	808