Leases (Notes)

12 Months Ended

Dec. 31, 2019

The Company is obligated under various long-term and short-term operating leases for rail cars, buildings, land and other transportation and storage assets. The Company determines whether an arrangement is, or contains, a lease at contract inception. Some of the Company's arrangements contain both lease and non-lease components. For certain transportation equipment leases, the Company accounts for the lease and non-lease components as a single lease component. The Company records right-of-use assets and corresponding lease liabilities for operating leases with terms greater than one year. Operating lease right-of-use assets and liabilities are recorded at the present value of the fixed lease payments over the life of the lease. The majority of the Company's leases do not provide an implicit rate. Therefore, the Company uses its incremental borrowing rate at lease commencement to measure operating lease right-of-use assets and lease liabilities. Certain of the Company's leases provide for renewal and purchase options. Renewal and purchase options are evaluated at lease commencement and included in the lease term if they are reasonably certain to be exercised. Short-term leases are recognized in rental expense on a straight-line basis over the lease term and are not recorded in the consolidated balance sheets. The Company's finance leases are not material to the consolidated financial statements.

Lease-related asset and liability balances were as follows:



	December 31, 2019
Operating Leases
Right-of-use assets	$	443

Accrued and other liabilities	$	93
Operating lease liabilities	355
Total operating lease liabilities	$	448

Weighted Average Remaining Term (in years)	8
Weighted Average Lease Discount Rate	3.5		%

The Company's operating lease cost is comprised of payments related to operating leases recorded in the consolidated balance sheet and short-term rental payments for leases that are not recorded in the consolidated balance sheet. Variable operating lease cost was not material to the consolidated statement of operations for the years ended December 31, 2019 and 2018. The components of operating lease expense were as follows:



	December 31, 2019
Operating lease cost ⁽¹⁾	$	113
Short-term lease cost	58
Total operating lease cost	$	171

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(1)	Includes fixed lease payments for operating leases recorded in the consolidated balance sheet.

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



	Operating Leases
2020	$	106
2021	83
2022	69
2023	55
2024	43
Thereafter	189
Total lease payments	545
Less: imputed interest	(97		)
Present value of lease liabilities	$	448

Future lease commitments for operating lease obligations were as follows at December 31, 2018:



	Operating Leases
2019	$	94
2020	89
2021	70
2022	56
2023	42
Thereafter	152
Total lease payments	$	503

Related Party Leases

The Company leases certain assets under operating leases with related parties. As of December 31, 2019, right-of-use assets and the associated operating lease liabilities for related party operating leases were approximately $50. The Company recognized operating lease cost for fixed lease payments to related parties of $18 for the year ended December 31, 2019.