Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

The components of lease expense are as follows:

	Year Ended December 31, 2019	Statement of Operations Classification
	(In $ millions)
Lease Cost
Operating lease cost	39	Cost of sales / Selling, general and administrative expenses
Short-term lease cost	23	Cost of sales / Selling, general and administrative expenses
Variable lease cost	8	Cost of sales / Selling, general and administrative expenses
Finance lease cost
Amortization of leased assets	19	Cost of sales
Interest on lease liabilities	18	Interest expense
Total net lease cost	107

Supplemental consolidated balance sheet information related to leases is as follows:

	As of December 31, 2019	Balance Sheet Classification
	(In $ millions)
Leases
Assets
Operating lease assets	203	Operating lease ROU assets
Finance lease assets	83	Property, plant and equipment, net
Total leased assets	286
Liabilities
Current
Operating	29	Current Other liabilities
Finance	26	Short-term borrowings and current installments of long-term debt
Noncurrent
Operating	181	Operating lease liabilities
Finance	118	Long-term debt
Total lease liabilities	354

	As of December 31, 2019
Weighted-Average Remaining Lease Term (years)
Operating leases	15.0
Finance leases	6.9
Weighted-Average Discount Rate
Operating leases	2.7	%
Finance leases	11.5	%

Supplemental consolidated cash flow information related to leases is as follows:

	Year Ended December 31, 2019
	(In $ millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	36
Operating cash flows from finance leases	19
Financing cash flows from finance leases	23
ROU assets obtained in exchange for finance lease liabilities	—
ROU assets obtained in exchange for operating lease liabilities	11

Maturities of lease liabilities are as follows:

	As of December 31, 2019
	Operating Leases		Finance Leases
	(In $ millions)
2020	35		42
2021	27		40
2022	23		31
2023	21		23
2024	18		18
Later years	132		70
Total lease payments	256		224
Less amounts representing interest	(46	)	(80	)
Total lease obligations	210		144

See Note 3 for additional information regarding the adoption of ASU 2016-02, Leases.

Disclosures related to periods prior to adoption of ASU 2016-02

Operating lease rent expense was approximately $96 million for the year ended December 31, 2018. Future minimum lease payments under non-cancelable rental and lease agreements which had initial or remaining terms in excess of one year are as follows:

	As of December 31, 2018
	Operating Leases	Capital Leases
	(In $ millions)
2019	43	42
2020	34	42
2021	25	40
2022	23	32
2023	21	23
Later years	130	88
Minimum lease commitments	276	267
Less amounts representing interest		(100	)
Present value of net minimum lease obligations		167