Leases Leases (Notes)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

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 10 months 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 June 30, 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						Six Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020		June 30, 2019
	(In millions)
Lease cost:
Operating lease cost	$	75		$	73		$	147	$	146
Short-term lease cost	25			24			54		47
Total lease cost	$	100		$	97		$	201	$	193
Other information:
Operating lease liability principal payments							$	142	$	98
Right-of-use assets obtained in exchange for new operating lease liabilities							$	169	$	168
	June 30, 2020			June 30, 2019
Weighted-average remaining lease term - operating leases (in years)	7			8
Weighted average discount rate - operating leases	4.5		%	4.7		%

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

	Undiscounted
	Cash Flows
	(In millions)
Remainder of 2020	$	145
2021	264
2022	232
2023	186
2024	126
2025	71
Thereafter	241
Total	1,265
Less interest (1)	(181		)
Lease liability	$	1,084

⁽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 June 30, 2020 and December 31, 2019, the Company had right-of-use assets included in Other assets of $1.1 billion and $1.0 billion, respectively, current lease liabilities included in Accrued expenses and other payables of $239 million and $215 million, respectively, and non-current lease liabilities included in Other long-term liabilities of $846 million and $781 million, respectively, in its consolidated balance sheets.