Leases

3 Months Ended

Mar. 31, 2019

Leases

We have entered into leases for certain facilities, vehicles, material handling and other equipment. Our leases have remaining contractual terms up to 20 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 1 year. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our operating lease costs are primarily related to facility leases for inventory warehousing and administration offices, and our finance leases are immaterial.

Operating Lease Cost

(a) Includes short-term leases, which are immaterial.

Operating Lease Assets and Liabilities



	March 31, 2019		Balance Sheet Classification
Lease assets	$	421	Other Assets

Current lease liabilities	$	131	Accrued expenses and other current liabilities
Noncurrent lease liabilities	301		Other Liabilities
Total lease liabilities	$	432

Maturity of Operating Lease Liabilities



	March 31, 2019
2019	$	114
2020	124
2021	86
2022	58
2023	40
Thereafter	73
Total lease payments	495
Less imputed interest	63
Present value of lease liabilities	$	432

As of March 31, 2019, our operating leases have a weighted-average remaining lease term of 4.6 years and a weighted-average discount rate of 5.2 percent. Cash paid for amounts included in the measurement of operating lease liabilities was $39 for the three months ended March 31, 2019.

The future minimum obligations under operating leases in effect as of December 31, 2018 having a noncancelable term in excess of one year as determined prior to the adoption of ASU 842 are as follows:



	December 31, 2018
2019	$	160
2020	123
2021	85
2022	57
2023	41
Thereafter	72
Future minimum obligations	$	538

Three Months Ended
March 31, 2019

Income Statement Classification

Lease cost

Cost of products sold, Marketing, research and general expenses

Variable lease cost^(a)

Cost of products sold, Marketing, research and general expenses

Total lease cost