Leases Leases (Notes)

3 Months Ended

Mar. 31, 2020

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, 2020.

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, 2020			Three Months Ended March 31, 2019
	(In millions)
Lease cost:
Operating lease cost	$	72		$	73
Short-term lease cost	29			23
Total lease cost	$	101		$	96

Other information:
Operating lease liability principal payments	$	70		$	40
Right-of-use assets obtained in exchange for new operating lease liabilities	$	25		$	61

	March 31, 2020			March 31, 2019
Weighted-average remaining lease term - operating leases (in years)	7			7
Weighted average discount rate - operating leases	4.5		%	4.6		%

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



	Undiscounted
	Cash Flows
	(In millions)
Remainder of 2020	$	195
2021	230
2022	199
2023	154
2024	96
2025	55
Thereafter	233
Total	1,162

Less interest ⁽¹⁾	(175		)
Lease liability	$	987

⁽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, 2020 and December 31, 2019, the Company had right-of-use assets included in Other assets of $965 million and $971 million, respectively, current lease liabilities included in Accrued expenses and other payables of $218 million and $215 million, respectively, and non-current lease liabilities included in Other long-term liabilities of $769 million and $781 million, respectively, in its consolidated balance sheets.