Leases (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Amounts recognized at January 1, 2019 for operating leases were as follows (in millions):

	January 1, 2019
ROU assets	$	696
Short-term lease liability	52
Long-term lease liability	644

Lease, Cost [Table Text Block]

Following are components of our lease cost (in millions):

	Year ended December 31, 2019
Operating leases	$	136
Short-term and variable leases	92
Total lease cost(a)	$	228

_______

(a) Includes $46 million of capitalized lease costs.

Other information related to our operating leases are as follows (in millions, except lease term and discount rate):

	Year ended December 31, 2019
Operating cash flows from operating leases	$	(182	)
Investing cash flows from operating leases	(46		)
ROU assets obtained in exchange for operating lease obligations, net of retirements adjusted for currency conversion	102
Amortization of ROU assets	75
Removal of ROU assets and liabilities associated with the KML and U.S. Cochin Sale	(394		)
Weighted average remaining lease term	13.40 years
Weighted average discount rate	4.31		%

Amounts recognized in the accompanying consolidated balance sheet are as follows (in millions):

Lease Activity	Balance sheet location	December 31, 2019
ROU assets	Deferred charges and other assets	$	329
Short-term lease liability	Other current liabilities	40
Long-term lease liability	Other long-term liabilities and deferred credits	289
Finance lease assets	Property, plant and equipment, net	2
Finance lease liabilities	Long-term debt—Outstanding	2

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Operating lease liabilities under non-cancellable leases (excluding short-term leases) as of December 31, 2019 are as follows (in millions):

Year	Commitment
2020	$	55
2021	45
2022	38
2023	32
2024	30
Thereafter	267
Total lease payments	467
Less: Interest	(138		)
Present value of lease liabilities	$	329

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Under the transition provision of Topic 842, we elected the effective date transition option. Following is the additional required transition disclosure for undiscounted future gross minimum operating lease payments and ROW obligations as of December 31, 2018 under ASC 840 (in millions):

	Leases(a)		ROW(b)		Total(c)
2019	$	90	$	25	$	115
2020	75		25		100
2021	70		25		95
2022	65		26		91
2023	59		25		84
Thereafter	771		88		859
Total payments	$	1,130	$	214	$	1,344

_______

(a) Total future minimum lease obligations include $695 million for assets included in the KML and U.S. Cochin Sale (see Note 3).

(b) Refer to Note 13 for additional information regarding our ROW obligations as of December 31, 2019.

(c)

This table has been revised from the previously reported December 31, 2018 future gross minimum rental commitments under our operating leases and ROW obligations table in our 2018 Form 10-K to (i) separately present lease and ROW obligations and (ii) to correct amounts previously reported to include an additional $482 million of undiscounted future lease payments, primarily in the “Thereafter” amount associated with the 2018 extension of KML’s, Edmonton South tank lease through December 2038.