LEASES

12 Months Ended

Dec. 31, 2020

Leases of Lessee Disclosure [Text Block]

A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, information technology equipment, and automobiles. The majority of our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Operating lease ROU assets are included in Other assets. The current portion of operating lease liabilities are included in Accrued liabilities, and the non-current portion of operating lease liabilities are included in Other liabilities on the Consolidated Balance Sheet. Finance lease ROU assets are included in Property, plant and equipment—net. The current portion of finance lease liabilities are included in Current maturities of long-term debt, and the non-current portion of finance lease liabilities are included in Long-term debt on the Consolidated Balance Sheet.

A portion of the Company's real estate leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our automobile leases is considered variable. The variable lease payments for such automobiles leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments was incurred.


	Years Ended December 31,
	2020		2019
Operating lease cost	$	214	$	222
Variable lease cost	18		27
Short-term lease cost	17		12
Finance lease cost:
Amortization of right-of-use assets	69		65
Interest on lease liability	27		30
Total finance lease cost	96		95
Total lease cost	$	345	$	356

Supplemental cash flow information related to leases was as follows:


	Years Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	206	$	224
Operating cash flows for finance leases	32		32
Financing cash flows for finance leases	65		61
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	245	$	179
Finance leases	27		34

Supplemental balance sheet information related to leases was as follows:


	December 31,
	2020			2019
Operating leases
Other assets	$	773		$	673
Accrued liabilities	187			171
Other liabilities	641			534
Total operating lease liabilities	$	828		$	705
Finance leases
Property, plant and equipment	$	357		$	361
Accumulated depreciation	(180)			(152)
Property, plant and equipment—net	$	177		$	209
Current maturities of long-term debt	60			59
Long-term debt	124			156
Total finance lease liabilities	$	184		$	215
Weighted-average remaining lease term
Operating leases	7 years			6 years
Finance leases	3 years			4 years
Weighted-average discount rate
Operating leases	2.9		%	3.3		%
Finance leases	16.3		%	16.2		%

As of December 31, 2020, maturities of lease liabilities were as follows:


	Operating Leases		Finance Leases
2021	$	204	$	83
2022	169		63
2023	137		46
2024	103		40
2025	69		13
Thereafter	231		—
Total lease payments	913		245
Less-interest	(85)		(61)
Total	$	828	$	184