Leases Leases (Notes)

3 Months Ended

Mar. 31, 2019

Leases of Lessee Disclosure [Text Block]

Leases

Lessee Accounting

The Company leases certain transportation equipment, plant equipment, office equipment, land, buildings, and storage facilities. Most leases include options to renew, with renewal terms that can extend the lease term from 1 month to 49 years. Certain leases also include index and non-index escalation clauses and options to purchase the leased property. Leases accounted for as finance leases were immaterial at March 31, 2019.

As an accounting policy election, the Company does not apply the recognition requirements of Topic 842 to short-term leases in all of its underlying asset categories. The Company recognizes short-term lease payments in earnings on a straight-line basis over the lease term, and variable lease payments in the period in which the obligation for those payments is incurred.

The following table sets forth the amounts relating to the Company’s total lease cost and other information.



	Three Months Ended March 31, 2019
	(Amounts in millions)
Lease cost:
Operating lease cost	$	73
Short-term lease cost	23
Total lease cost	$	96

Other information:
Operating lease liability principal payments	$	40
Right-of-use assets obtained in exchange for new operating lease liabilities	$	61
Weighted-average remaining lease term - operating leases (in years)	7
Weighted average discount rate - operating leases	4.6		%

Below is a tabular disclosure of the future annual undiscounted cash flows for operating lease liabilities.



Remainder of 2019	$	173
2020	181
2021	150
2022	121
2023	86
2024	48
Thereafter	224
Total	983
Less interest ⁽¹⁾	166
Lease liability	$	817

⁽¹⁾ Calculated using the implicit rate of the lease, if available, or the incremental borrowing rate that is appropriate for the tenor and geography of the lease.

As of March 31, 2019, the Company had $797 million of right-of-use assets included in Other assets, $195 million of current lease liabilities included in Accrued expenses and other payables, and $622 million of non-current lease liabilities included in Other long-term liabilities in its consolidated balance sheet.