Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense were as follows:

($ in millions)	Classification in the Condensed Consolidated Statement of Income	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	Cost of sales, exclusive of depreciation and amortization		$8		$26
Operating lease cost	Selling, general and administrative	50		147
Total operating lease cost			$58		$173
Finance lease cost:
Amortization of right-of-use assets	Depreciation		$1		$2
Interest on lease liabilities	Interest Expense	—		1
Total finance lease cost			$1		$3
Total lease cost			$59		$176

Total operating lease cost is inclusive of the following:

($ in millions)	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Variable lease costs		$3		$10
Short-term lease costs		$1		$4

Schedule of Classification on the Condensed Consolidated Balance Sheet

($ in millions)	Classification on the Condensed Consolidated Balance Sheet	September 30, 2019
Assets:
Operating	Operating lease right-of-use assets		$742
Finance (a)	Property, plant, and equipment	19
Total leased assets			$761
Liabilities:
Current
Operating	Current portion of operating lease liabilities		$162
Finance	Short-term debt and current portion of long-term debt	3
Noncurrent
Operating	Operating lease liabilities	588
Finance	Long-term debt	8
Total lease liabilities			$761

(a)

Net of accumulated depreciation of $11 million.

Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations

($ in millions)	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$157
Operating cash flows from finance leases		$—
Financing cash flows from finance leases		$3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$145
Finance leases		$1

Schedule of Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate

	As of September 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	7.5
Finance leases	6.3
Weighted-average discount rate
Operating leases	3.1	%
Finance leases	9.3	%

Schedule of Maturities of Lease Liabilities, Operating Lease

As of September 30, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining three months of 2019		$50		$1
2020	173		3
2021	134		2
2022	105		2
2023	82		1
Thereafter	303		4
Total lease payments		$847		$13
Less: Interest	97		2
Total lease obligations		$750		$11

Schedule of Maturities of Lease Liabilities, Finance Lease

As of September 30, 2019, maturities of lease liabilities were as follows:

($ in millions)	Operating Leases		Finance Leases
Remaining three months of 2019		$50		$1
2020	173		3
2021	134		2
2022	105		2
2023	82		1
Thereafter	303		4
Total lease payments		$847		$13
Less: Interest	97		2
Total lease obligations		$750		$11

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3

Schedule of Future Minimum Lease Payments for Capital Leases

As required, the following disclosure is provided for periods prior to adoption. Minimum lease commitments as of December 31, 2018 that have initial or remaining lease terms in excess of one year are as follows:

($ in millions)	Operating Leases		Capital Leases
2019		$207		$3
2020	157		3
2021	116		1
2022	93		1
2023	76		1
Beyond 2023		$244		$3