The Company leases certain facilities, vehicles and equipment. The Company determines if an arrangement contains a lease at contract inception and recognizes ROU assets and lease liabilities for leases with terms greater than twelve months. Leases with an initial term of twelve months or less are accounted for as short-term leases and are not recognized in the balance sheet. Operating fixed lease expenses and finance lease depreciation expense are recognized on a straight-line basis over the lease term. Variable lease payments which cannot be determined at the lease commencement date, such as reimbursement of lessor expenses, were not included in the ROU assets or lease liabilities.

Many leases include both lease and non-lease components which are primarily related to management services provided by lessors for the underlying assets. The Company elected the practical expedient to account for lease and non-lease components as a single lease component for all leases as well as the practical expedient that allows the Company to carry forward the historical lease classifications. For all new and modified leases entered into after the adoption of ASC 842, the Company reassesses the lease classification and lease term on the effective date of modification. Lease term includes renewal periods if the Company is reasonably certain to exercise any renewal options per the lease contract. The Company’s leases do not contain any material residual value guarantees or restrictive covenants. The Company subleases certain real estate to third parties; however, this activity is not material.

As most leases do not have readily determinable implicit rates, the Company estimates the incremental borrowing rates based on prevailing financial market conditions, comparable companies and credit analysis and management judgments to determine the present values of its lease payments. The Company also applies the portfolio approach to account for leases with similar terms. As of December 31, 2020, the weighted-average remaining lease terms were approximately 3 years for operating leases and 5 years for finance leases, and the weighted-average discount rates were 6.5% for operating leases and 5.6% for finance leases.

During the year ended December 31, 2020, the Company recognized $2 million impairment of operating right-of-use assets which was included in impairment charges in the consolidated statements of operations. See Note 8 “Intangibles, net” for additional information.

		December 31,
	Classification	2020		2019
Assets
Operating	Other assets	$	41	$	56
Finance	Property, plant and equipment, net		10		16
Total ROU assets		$	51	$	72

Liabilities
Current
Operating	Accrued liabilities	$	17	$	21
Finance	Other current liabilities		5		7
Long-term
Operating	Long-term operating lease liabilities		25		34
Finance	Other long-term liabilities		6		10
Total lease liabilities		$	53	$	72

		Year Ended December 31,
	Classification	2020		2019
Operating lease cost ⁽¹⁾	Warehousing, selling and administrative	$	26	$	31
Finance lease ROU asset depreciation ⁽²⁾	Warehousing, selling and administrative		7		5
Short-term lease cost	Warehousing, selling and administrative		6		7
Variable lease cost	Warehousing, selling and administrative		2		3

⁽¹⁾ Included in other, net adjustment to reconcile net income to net cash provided by (used in) operating activities in the consolidated statement of cash flows.

⁽²⁾ Included in depreciation and amortization in the consolidated statement of cash flows. Interest on finance lease liabilities is approximately $1 million.

Rental expense related to operating leases approximated $48 million for the year ended December 31, 2018.

	Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	27	$	31
Financing cash flows from finance leases ⁽¹⁾		7		5
ROU assets obtained in exchange for new lease liabilities
Operating	$	10	$	17
Finance		2		20

⁽¹⁾ Interest payments from finance lease liabilities is approximately $1 million.

Maturity of lease liabilities as of December 31, 2020 were as follows (in millions):

	Operating Lease			Finance Lease
2021	$	19		$	6
2022		14			4
2023		9			1
2024		3			—
2025		—			—
Thereafter		1			2
Total future lease payments		46			13
Less: interest		(4	)		(2	)
Present value of lease liabilities	$	42		$	11

The Company assumed leases with certain former owners of acquired entities for premises utilized by the acquired entities in the performance of their operations. Most of these leases are renewable at the Company’s option and contain clauses for payment of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. The aggregated rental expense was approximately $2 million, $2 million and $3 million for the years ended December 31, 2020, 2019, and 2018, respectively. Total future commitments related to these operating leases is approximately $4 million through 2023.