LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

Adoption

Effective January 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective method of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard. This allowed us to carry forward the historical lease classification. Adoption of this standard resulted in the recording of net operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of $0.7 billion. Financial position for reporting periods beginning on or after January 1, 2019 are presented under the new guidance, while prior periods amounts are not adjusted and continue to be reported in accordance with previous guidance.

A significant portion of the Company's operating and finance lease portfolio includes corporate offices, research and development facilities, manufacturing sites, information technology (IT) equipment, and automobiles. The majority of our leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases for 5 years or more. Operating lease ROU assets are presented within Other assets. The current portion of operating lease liabilities are presented within Accrued liabilities, and the non-current portion of operating lease liabilities are presented within Other liabilities on the Consolidated Balance Sheet. Finance lease assets are included in Property, plant and equipment - net, and the finance lease obligations are included in Current maturities of long-term debt, and in Long-term debt on the Consolidated Balance Sheet.

A portion of the Company's real estate leases is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our automobile leases is considered variable. The variable lease payments for such automobiles leases are based on actual mileage incurred at the stated contractual rate and recognized in the period in which the obligation for those payments was incurred.

	Year Ended December 31, 2019
Operating lease cost	$	222
Variable lease cost	27
Short-term lease cost	12
Finance lease cost:
Amortization of right-of-use assets	65
Interest on lease liability	30
Total finance lease cost	95
Total lease cost	$	356

Supplemental cash flow information related to leases was as follows:

	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	224
Operating cash flows from finance leases	32
Financing cash flows from finance leases	61
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	179
Finance leases	34

Supplemental balance sheet information related to leases was as follows:

	December 31, 2019
Operating leases
Other assets	$	673
Accrued liabilities	171
Other liabilities	534
Total operating lease liabilities	$	705
Finance leases
Property, plant and equipment	$	361
Accumulated depreciation	(152		)
Property, plant and equipment - net	$	209
Current maturities of long-term debt	59
Long-term debt	156
Total finance lease liabilities	$	215
Weighted-average remaining lease term
Operating leases	6 years
Finance leases	4 years
Weighted-average discount rate
Operating leases	3.3		%
Finance leases	16.2		%

As of December 31, 2019, maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases
2020	$	195		$	86
2021	162			73
2022	128			53
2023	97			41
2024	63			37
Thereafter	145			12
Total lease payments	790			302
Less: interest	(85		)	(87		)
Total	$	705		$	215

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining noncancellable lease terms in excess of one year would have been as follows:

	At December 31, 2018
2019	$	210
2020	168
2021	142
2022	109
2023	80
Thereafter	147
	$	856