Leases (Tables)

12 Months Ended

Dec. 31, 2019

Our operating and finance leases are included in our December 31, 2019, Consolidated Balance Sheet and Consolidated Statement of Income as follows:



	Classification
Consolidated Balance Sheet
Assets:
Operating lease assets	Operating lease assets	$	44
Finance lease assets	Property, plant, and equipment, net	1
Total lease assets		$	45
Liabilities:
Current
Operating	Accounts payable and accrued liabilities	$	8
Finance	Current portion of long-term debt	—
Non-current
Operating	Non-current operating lease liabilities	36
Finance	Long-term debt, excluding current portion	1
Total lease liabilities		$	45



	Classification
Consolidated Statement of Income
Lease Cost:
Operating lease cost	Cost of sales and Selling, general and administrative expenses	$	10
Finance lease cost
Amortization of leased assets	Cost of sales	—
Interest on lease liabilities	Interest expense	—
Total lease cost		$	10

For the year ended December 31, 2019, we incurred short-term lease and variable lease costs of $31 million, and we made cash payments of $9 million in operating leases.

We obtained ROU assets in exchange for new operating and finance lease liabilities of $47 million and $1 million, respectively, for the year ended December 31, 2019.

The following table sets forth the minimum lease payments that are expected to be made in each of the years indicated.



Maturity of Lease Liabilities	Operating Leases			Finance Leases		Total
2020	$	11		$	1	$	12
2021	8			—		8
2022	6			—		6
2023	3			—		3
2024	2			—		2
2025 and thereafter	29			—		29
Total lease payments	59			1		60
Less: Interest	(15		)	—		(15		)
Present value of lease liabilities	$	44		$	1	$	45