Leases

12 Months Ended

Dec. 31, 2019

Leases.

All Segments and Holding Company

We have operating and finance leases primarily within our Automotive, Energy and Food Packaging segments. Our Automotive segment leases assets, primarily real estate (operating) and vehicles (financing) and which primarily consist of leases that expire within 14 years. Our Energy segment leases certain pipelines, storage tanks, railcars, office space, land and equipment (operating and financing). Our Food Packaging segment leases assets, primarily real estate, equipment and vehicles (primarily operating). Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right-of-use assets and related liabilities are recorded on the balance sheet for leases with an initial lease term in excess of twelve months and therefore, do not include any lease arrangements with initial lease terms of twelve months or less.

Right-of-use assets and lease liabilities are as follows:


	December 31, 2019		December 31, 2018
	(in millions)
Operating Leases:
Right-of-use assets (other assets)	$	622	$	—
Lease liabilities (accrued expenses and other liabilities)	647		—

Financing Leases:
Right-of-use assets (property, plant and equipment, net)	77		41
Lease liabilities (debt)	93		52

Additional information with respect to our operating leases as of December 31, 2019 is presented below. The lease terms and discount rates for our Energy, Automotive and Food Packaging segments represent weighted averages based on their respective lease liability balances.


Operating Leases	Right-Of-Use Assets		Lease Liabilities		Lease Term	Discount Rate
	(in millions)
Energy	$	48	$	48	3.7 years	5.6%
Automotive	501		527		5.2 years	5.7%
Food Packaging	34		38		11.7 years	7.4%
Other segments and Holding Company	39		34
	$	622	$	647

Maturities of lease liabilities as of December 31, 2019 are as follows:


Year	Operating Leases		Financing Leases
	(in millions)
2020	$	181	$	20
2021	159		17
2022	135		15
2023	85		13
2024	57		12
Thereafter	142		53
Total lease payments	759		130
Less: imputed interest	(112)		(37)
	$	647	$	93

For the year ended December 31, 2019, lease cost was comprised of operating lease cost of $202 million, amortization of financing lease right-of use assets of $13 million and interest expense on financing lease liabilities of $7 million.

Rent expense under operating leases for the years ended December 31, 2018 and 2017, prior to the adoption of ASC 842, was $168 million and $155 million, respectively.

Real Estate

Our Real Estate segment leases real estate, primarily commercial properties under long-term operating leases. As of December 31, 2019 and 2018, our Real Estate segment has assets leased to others included in property, plant and equipment of $220 million and $217 million, respectively, net of accumulated depreciation. Our Real Estate segment’s revenue from operating leases were $33 million, $39 million and $44 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in other revenue from operations in the consolidated statements of operations. Our Real Estate segment’s anticipated future receipts of minimum operating lease payments receivable are $33 million for 2020, $6 million in 2021 and $3 million in 2022 and thereafter.