Leases

12 Months Ended

Dec. 31, 2019

We enter into operating leases primarily for: real estate, including for manufacturing, engineering, research, administration, sales and warehousing facilities; information technology equipment; and other equipment. At December 31, 2019 and December 31, 2018, we did not have any finance leases. Approximately 90% of our future lease commitments, and related

lease liability, relate to our real estate leases. Some of our leases also include options to extend the lease or terminate the lease. A small portion of our leases include variable escalation clauses, which are typically based on CPI rates, or other variable lease-related payments.

The components of lease expense were as follows:



(In millions)	2019			2018			2017
Operating lease cost	$	240		$	236		$	232
Variable lease cost⁽¹⁾	—			—			—
Sublease income	(1		)	(4		)	(3		)
Total lease cost	$	239		$	232		$	229


(1)	Variable lease cost was less than $1 million for 2019, 2018 and 2017, respectively.

Gains and losses on sale and leaseback transactions were de minimis in 2019, 2018 and 2017.

At December 31, 2019, our future lease payments under non-cancellable leases were as follows:



(In millions)
2020	$	242
2021	217
2022	168
2023	116
2024	71
Thereafter	238
Total future lease payments⁽¹⁾	1,052
Imputed interest	(133		)
Total lease liabilities	$	919


(1)	Total future lease payments exclude future lease payments related to leases that were signed but had not yet commenced. There were none as of December 31, 2019.

Our lease liabilities recognized in our consolidated balance sheet at December 31, 2019 were as follows:



(In millions)
Operating lease liabilities—current	$	213
Operating lease liabilities—noncurrent	706
Total lease liabilities	$	919

The weighted-average remaining lease term related to our operating leases was 8 years and 7 years as of December 31, 2019 and December 31, 2018, respectively. The weighted-average discount rate related to our operating leases was 3.1% as of both December 31, 2019 and December 31, 2018.

Other information related to leases was as follows:



(In millions)	2019		2018		2017
Cash paid for amounts included in the measurement of operating lease liabilities	$	243	$	250	$	218
Right-of-use assets obtained in exchange for new operating lease obligations	271		182		239

There were no material restrictions or covenants imposed by our leases at December 31, 2019 or December 31, 2018. In addition, we did not have any related party leases and our sublease transactions were de minimis.