The Company leases certain buildings, warehouses, rail cars, land and operating equipment under both operating and finance leases expiring on various dates through 2044. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, the Company combines lease and non-lease components.

The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right of use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. Nearly all of the Company’s lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company estimates the incremental borrowing rate to discount the lease payments based on information available at lease commencement.

The tables and discussion below represent the Company’s continuing operations and exclude the Held for Sale Business.

The table below summarizes the lease costs for the year ended December 31, 2020 and the Successor period July 2, 2019 through December 31, 2019 and the Predecessor period January 1, 2019 through July 1, 2019:


	Classification	Successor				Predecessor
		December 31, 2020		July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019
Operating lease expense	Operating (loss) income	$	29	$	18	$	16
Short-term lease expense	Operating (loss) income	5		2		5
Amortization expense	Operating (loss) income	2		1		1

Interest expense from financing leases	Interest expense, net	<1		<1		<1
Variable lease expense	Operating (loss) income	3		3		2

The table below presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheets:


Successor
	Classification	December 31, 2020		December 31, 2019
Assets:
Operating(1)	Operating lease assets	$	103	$	110
Finance(2)	Machinery and Equipment	13		10
Total leased assets		$	116	$	120
Liabilities:
Current
Operating	Current portion of operating lease liabilities	$	19	$	20
Finance	Debt payable within one year	2		4
Noncurrent
Operating	Operating lease liabilities	76		82
Finance	Long-term debt	6		3
Total leased liabilities		$	103	$	109

(1) Operating lease assets include $8 and $9 of favorable leasehold interests as of December 31, 2020 and 2019, respectively.

(2) Finance lease assets are recorded net of accumulated amortization of $3 and $1 as of December 31, 2020 and 2019, respectively.

Cash paid for operating leases approximated operating lease expense and non-cash right-of-use asset amortization for the year ended December 31, 2020, the Successor period July 2, 2019 through December 31, 2019 and the Predecessor period January 1, 2019 through July 1, 2019. The table below presents other cash and noncash consideration detail for the year ended December 31, 2020, the Successor period July 2, 2019 through December 31, 2019 and the Predecessor period January 1, 2019 through July 1, 2019:


	Successor				Predecessor
	December 31, 2020		July 2, 2019 through December 31, 2019		January 1, 2019 through July 1, 2019
Cash paid for finance leases	$	4	$	2	$	2
Right-of-use assets obtained in exchange for operating lease	13		2		1
Right-of-use assets obtained in exchange for finance lease obligations	5		—		3


Successor	December 31, 2020		December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	10.0		10.7
Finance leases	4.8		1.7
Weighted-average discount rate
Operating leases	5.24	%	5.74 %
Finance leases	7.73	%	10.00	%

The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the Company’s Consolidated Balance Sheet as of December 31, 2020:


Year	Minimum Rentals Under Operating Leases		Minimum Payments Under Finance Leases(1)
2021	$	23	$	2
2022	16		1
2023	11		1
2024	9		1
2025	9		1
2026 and thereafter	58		3
Total lease payments	$	126	$	9
Less: Amount representing interest	(31)		(1)
Present value of lease liabilities	$	95	$	8