Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

The Company adopted new guidance on lease accounting on January 1, 2019 on a modified retrospective basis, as discussed in Note A. Total operating lease expense under the previous guidance was $50 for each of the years ended December 31, 2018 and 2017.

The components of lease expense for the year ended December 31, 2019 were as follows:

	2019
Operating lease costs:
Operating lease cost	$	49
Short-term lease cost	4
Total operating lease costs	$	53
Finance lease cost:
Amortization of right-of-use assets	$	1
Total finance lease costs	$	1

Variable operating lease costs were $3 for the year ended December 31, 2019. Interest on finance lease liabilities was less than $1 for the year ended December 31, 2019.

Supplemental cash flow information related to leases was as follows:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	51
Financing cash flows from finance leases	15
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	33

Operating cash flows from finance leases were less than $1 for the year ended December 31, 2019.

Supplemental balance sheet information related to leases was as follows:

	2019
Operating leases:
Operating lease right-of-use assets	$	204
Current portion of operating lease liabilities	$	51
Non-current portion of operating lease liabilities	156
Total operating lease liabilities	$	207
Finance leases:
Property, plant and equipment	$	27
Accumulated depreciation	(1		)
Property, plant and equipment, net	$	26
Accrued liabilities	$	2
Other non-current liabilities	11
Total finance lease liabilities	$	13
Weighted average remaining lease term:
Operating leases	9.5
Finance leases	7.0
Weighted average discount rate:
Operating leases	4.2		%
Finance leases	4.1		%

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Operating Leases			Finance Leases
2020	$	53		$	3
2021	42			2
2022	30			2
2023	22			2
2024	18			2
Thereafter	100			4
Total lease payments	265			15
Less imputed interest	(58		)	(2		)
Total	$	207		$	13

Maturities of lease liabilities as of December 31, 2018 were as follows:

	Operating Leases		Finance Leases
2019	$	54	$	5
2020	42		5
2021	34		5
2022	26		4
2023	21		4
Thereafter	117		6
Total lease payments	$	294	$	29

At December 31, 2019, the Company does not have material lease commitments that have not commenced.

Lesses

Leases

The Company adopted new guidance on lease accounting on January 1, 2019 on a modified retrospective basis, as discussed in Note A. Total operating lease expense under the previous guidance was $50 for each of the years ended December 31, 2018 and 2017.

The components of lease expense for the year ended December 31, 2019 were as follows:

	2019
Operating lease costs:
Operating lease cost	$	49
Short-term lease cost	4
Total operating lease costs	$	53
Finance lease cost:
Amortization of right-of-use assets	$	1
Total finance lease costs	$	1

Variable operating lease costs were $3 for the year ended December 31, 2019. Interest on finance lease liabilities was less than $1 for the year ended December 31, 2019.

Supplemental cash flow information related to leases was as follows:

	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	51
Financing cash flows from finance leases	15
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	33

Operating cash flows from finance leases were less than $1 for the year ended December 31, 2019.

Supplemental balance sheet information related to leases was as follows:

	2019
Operating leases:
Operating lease right-of-use assets	$	204
Current portion of operating lease liabilities	$	51
Non-current portion of operating lease liabilities	156
Total operating lease liabilities	$	207
Finance leases:
Property, plant and equipment	$	27
Accumulated depreciation	(1		)
Property, plant and equipment, net	$	26
Accrued liabilities	$	2
Other non-current liabilities	11
Total finance lease liabilities	$	13
Weighted average remaining lease term:
Operating leases	9.5
Finance leases	7.0
Weighted average discount rate:
Operating leases	4.2		%
Finance leases	4.1		%

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Operating Leases			Finance Leases
2020	$	53		$	3
2021	42			2
2022	30			2
2023	22			2
2024	18			2
Thereafter	100			4
Total lease payments	265			15
Less imputed interest	(58		)	(2		)
Total	$	207		$	13

Maturities of lease liabilities as of December 31, 2018 were as follows:

	Operating Leases		Finance Leases
2019	$	54	$	5
2020	42		5
2021	34		5
2022	26		4
2023	21		4
Thereafter	117		6
Total lease payments	$	294	$	29

At December 31, 2019, the Company does not have material lease commitments that have not commenced.