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LEASES (Notes)
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases of Lessee Disclosure LEASES
For additional information on the Company's leases, see Note 17 to the Consolidated Financial Statements included in the 2020 10-K.

The components of lease cost for operating and finance leases for the three and six months ended June 30, 2021 and 2020 were as follows:

Lease CostThree Months EndedSix Months Ended
In millionsJun 30, 2021Jun 30, 2020Jun 30, 2021Jun 30, 2020
Operating lease cost$118 $120 $239 $240 
Finance lease cost
Amortization of right-of-use assets - finance$19 $13 $34 $26 
Interest on lease liabilities - finance6 6 13 12 
Total finance lease cost$25 $19 $47 $38 
Short-term lease cost71 53 120 107 
Variable lease cost79 48 150 112 
Sublease income(1)(1)(3)(2)
Total lease cost$292 $239 $553 $495 
The following table provides supplemental cash flow information related to leases:

Other Lease InformationSix Months Ended
In millionsJun 30, 2021Jun 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$245 $240 
Operating cash flows for finance leases$13 $12 
Financing cash flows for finance leases$29 $21 

The following table summarizes the lease-related assets and liabilities recorded in the consolidated balance sheets at June 30, 2021 and December 31, 2020:

Lease PositionBalance Sheet ClassificationJun 30, 2021Dec 31, 2020
In millions
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$57 $185 
Finance leases$72 $178 
Assets
Operating lease assetsOperating lease right-of-use assets$1,745 $1,856 
Finance lease assetsProperty727 665 
Finance lease amortizationAccumulated depreciation(246)(216)
Total lease assets$2,226 $2,305 
Liabilities
Current
OperatingOperating lease liabilities - current$402 $416 
FinanceLong-term debt due within one year67 54 
Noncurrent
OperatingOperating lease liabilities - noncurrent1,419 1,521 
FinanceLong-Term Debt486 464 
Total lease liabilities$2,374 $2,455 

The weighted-average remaining lease term and discount rate for leases recorded in the consolidated balance sheets at June 30, 2021 and December 31, 2020 are provided below:

Lease Term and Discount RateJun 30, 2021Dec 31, 2020
Weighted-average remaining lease term
Operating leases7.4 years7.6 years
Finance leases10.6 years11.6 years
Weighted-average discount rate
Operating leases3.77 %3.84 %
Finance leases5.09 %5.41 %
The following table provides the maturities of lease liabilities at June 30, 2021:

Maturities of Lease LiabilitiesJun 30, 2021
In millionsOperating LeasesFinance Leases
2021$247 $47 
2022408 88 
2023330 112 
2024257 57 
2025177 46 
2026 and thereafter716 380 
Total future undiscounted lease payments$2,135 $730 
Less: Imputed interest314 177 
Total present value of lease liabilities$1,821 $553 

At June 30, 2021, Dow had additional leases of approximately $38 million, primarily for equipment, which had not yet commenced. These leases are expected to commence in 2021 and 2022, with lease terms of up to 10 years.

Dow provides guarantees related to certain leased assets, specifying the residual value that will be available to the lessor at lease termination through the sale of the assets to the lessee or third parties. The following table provides a summary of the final expiration, maximum future payments and recorded liability included in the consolidated balance sheets for residual value guarantees at June 30, 2021 and December 31, 2020. The Company had a recorded liability of $19 million related to these residual value guarantees at June 30, 2021 ($22 million at December 31, 2020), as payment of such residual value guarantees was determined to be probable. The lease agreements do not contain any material restrictive covenants.

Lease GuaranteesJun 30, 2021Dec 31, 2020
In millionsFinal ExpirationMaximum Future PaymentsRecorded LiabilityFinal ExpirationMaximum Future PaymentsRecorded Liability
Residual value guarantees2031$809 $19 2030$818 $22