Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Balance Sheet Information Related to Operating and Finance Leases

Operating and finance lease obligations at December 31 included in the Consolidated Balance Sheet were as follows:

	Operating Leases				Finance Leases
	2020		2019		2020		2019
	(In millions)
Right-of-use assets — net (a)	$	426	$	447	$	168	$	299
Lease obligations:
Current	$	63	$	182	$	18	$	17
Long-term	478		353		220		238
Total lease obligations	$	541	$	535	$	238	$	255

(a)At December 31, 2020, finance lease ROU assets had a cost of $212 million (2019: $381 million) and accumulated amortization of $44 million (2019: $82 million).

Schedule of Maturities of Lease Obligations

Maturities of lease obligations at December 31, 2020 were as follows:

	Operating Leases		Finance Leases
	(In millions)
2021	$	83	$	36
2022	83		36
2023	72		36
2024	71		36
2025	67		36
Remaining years	287		176
Total lease payments	663		356
Less: Imputed interest	(122)		(118)
Total lease obligations	$	541	$	238

Summary of Information Relates to Operating and Finance Leases Recorded

The following information relates to the Operating and Finance leases at December 31:

	Operating Leases		Finance Leases
	2020	2019	2020	2019
Weighted average remaining lease term	10.3 years	5.4 years	12.8 years	13.8 years
Range of remaining lease terms	0.1 - 15.5 years	0.1 - 16.1 years	12.8 years	13.8 years
Weighted average discount rate	4.0%	4.3%	7.9%	7.9%

Schedule of Components of Lease Cost

The components of lease costs for the years ended December 31, 2020 and 2019 were as follows:

	2020		2019
	(In millions)
Operating lease cost	$	200	$	414
Finance lease cost:
Amortization of leased assets	31		43
Interest on lease obligations	20		21
Short-term lease cost (a)	199		164
Variable lease cost (b)	38		89
Sublease income (c)	(15)		(12)
Total lease cost (d)	$	473	$	719

(a)Short-term lease cost is primarily attributable to equipment used in global exploration, development, production, and crude oil marketing activities.  Future short-term lease costs will vary based on activity levels of our operated assets.

(b)Variable lease costs for drilling rigs result from differences in the minimum rate and the actual usage of the ROU asset during the lease period.  Variable lease costs for logistical assets result from differences in stated monthly rates and total charges reflecting the actual usage of the ROU asset during the lease period.  Variable lease costs for our office leases represent common area maintenance charges which have not been separated from lease components.

(c)We sublease certain of our office space to third parties under our head lease.

(d)Prior to the adoption of ASC 842, we incurred total rental expense of $154 million and income from subleases of $8 million in 2018.

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 were as follows:

	Operating Leases				Finance Leases
	2020		2019		2020		2019
	(In millions)
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows (a)	$	218	$	419	$	20	$	21
Financing cash flows (a)	—		—		17		55
Noncash transactions:
Leased assets recognized for new lease obligations incurred	51		14		—		—
Changes in leased assets and lease obligations due to lease modifications (b)	123		14		—		—

(a)Amounts represent gross lease payments before any recovery from partners.

(b)Primarily related to negotiated extensions of an office lease and offshore drilling rig leases.