LEASES (Notes)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASES

On January 1, 2019, Delphi Technologies adopted ASC Topic 842, Leases, which requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet for leases, with the exception of short-term leases. The Company leases real estate (including manufacturing sites and technical centers), office equipment, automobiles, forklifts and certain other equipment under finance and operating leases. As of December 31, 2019, the remaining lease terms range from 1 year to 9 years. Many of the Company’s leases include rent escalation clauses, renewal options and/or termination options that are factored into the Company’s determination of lease payments and lease term, as appropriate. During the year ended December 31, 2019, the Company obtained $13 million of lease assets in exchange for new operating lease liabilities.

The Company is a lessor for certain owned real estate. Rental income for these leases is included within other income, net and was not material for the year end December 31, 2019.

The table below presents supplemental balance sheet information related to leases as of December 31, 2019:

		December 31, 2019
		(in millions)
Assets	Balance Sheet Location
Operating lease assets	Other long-term assets (Note 5)	$	107
Finance lease assets	Property, net	13
	Total lease assets	$	120
Liabilities
Current
Operating leases	Accrued liabilities (Note 9)	$	22
Finance leases	Short-term debt (Note 12)	2
Long-term
Operating leases	Other long-term liabilities (Note 9)	93
Finance leases	Long-term debt (Note 12)	12
	Total lease liabilities	$	129

The table below presents the components of lease costs as of December 31, 2019:

	For the Year Ended December 31, 2019:
	(in millions)
Finance lease cost - amortization of lease assets (1)	$	2
Operating lease cost (2)	35
Short-term lease cost	2
Variable lease cost	4
Total lease cost	$	43

(1) Includes interest on finance lease liabilities, which was not material.

(2) Includes right-of-use asset impairment charge of $4 million related to a real estate operating lease asset.

The table below presents the weighted-average remaining lease term and discount rate as of December 31, 2019:

Weighted-average remaining lease term (in years):
Operating leases	6.38
Finance leases	8.12
Weighted-average discount rate:
Operating leases	6.03	%
Finance leases	4.11	%

The table below presents supplemental cash flow information related to leases during the year ended December 31, 2019:

	For the Year Ended December 31, 2019:
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases (1)	$	28

(1) Operating and financing cash flows for finance leases were not material for the year ended December 31, 2019.

The table below reconciles the undiscounted future minimum lease payments to the lease liabilities recorded on the balance sheet as of December 31, 2019:

	Operating Leases			Finance Leases			Total
	(in millions)
2020	$	28		$	3		$	31
2021	25			2			27
2022	21			2			23
2023	14			2			16
2024	13			1			14
Thereafter	38			7			45
Total future minimum lease payments	139			17			156
Less: amount of lease payments representing interest	(24		)	(3		)	(27		)
Total lease liabilities	$	115		$	14		$	129