Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

4. Leases

We have operating and finance leases for real estate, vehicles, and equipment.

We incurred lease expense in the amount of $171 million for the year ended December 31, 2019. Operating and Financing lease costs were $148 million and $23 million, respectively, for the year ended December 31, 2019. Short-term rental expense, for agreements less than one year in duration, was immaterial. Financing lease cost is comprised of expenses for depreciation of right-of-use assets and interest on lease liabilities, and these expenses were not material for the year ended December 31, 2019.

Cash paid for amounts included in the measurement of lease liabilities totaled $123 million for the year ended December 31, 2019. Operating cash outflows for operating leases were $105 million. Cash payments for finance leases were $18 million, comprised of $6 million and $12 million of principal and interest payments, respectively.

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):

	December 31,
	2019
Operating Leases
Operating lease right-of-use assets, net (1)	$	504
Other current liabilities	$	62
Operating lease liabilities (2)		450
Total operating lease liabilities	$	512
Finance Leases
Property and equipment, at cost	$	294
Accumulated depreciation		(52)
Property and equipment, net	$	242
Current portion of long-term debt	$	9
Long-term debt		271
Total finance lease liabilities	$	280

(1)Included in other assets.

(2)Included in other liabilities.

The weighted average remaining lease terms for operating and financing leases are 12.5 years and 10.9 years, respectively. The weighted average discount rates for operating and financing leases are 4.1% and 5.5%, respectively.

As of December 31, 2019, maturities of lease liabilities under the new lease standard are as follows (in millions):

		2020		2021		2022		2023		2024		After 2024		Gross Total		Imputed Discount		Total
Operating Leases	$	98	$	81	$	72	$	64	$	52	$	388	$	755	$	(243)	$	512
Financing Leases		19		19		21		145		21		168		393		(113)		280

4. Leases (continued)

As of December 31, 2018, maturities of lease liabilities under the previous lease standard were as follows (in millions):

	Total		Less than ‎1 year		1 to 3 ‎years		3 to 5 ‎years		5 years and ‎thereafter
Capital leases and financing ‎  obligations	$	393	$	4	$	11	$	132	$	246
Imputed interest on capital leases and ‎  financing obligations		205		20		38		37		110
Minimum rental commitments		581		82		133		111		255

Total rental expense for operating leases was $156 million and $135 million for 2018 and 2017, respectively.

As of December 31, 2019, we have additional operating leases, primarily for new production facilities and equipment, that have not yet commenced or been recorded, of approximately $260 million on an undiscounted basis. These operating leases will commence between fiscal year 2020 and fiscal year 2021 with lease terms of 10 years to 20 years.