Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.20.1
Leases (Tables)
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Schedule of Leases, Balance Sheet Location
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):
 
Consolidated Balance Sheet Location
 
March 31, 2020
 
December 31, 2019
Right-of-use assets—Operating
Operating lease assets, net
 
$
350

 
$
439

Right-of-use assets—Financing
Property, plant and equipment, net
 
55

 
56

Total right-of-use assets
 
 
$
405

 
$
495

 
 
 
 
 
 
Current operating lease liabilities
Current operating lease liabilities
 
$
178

 
$
236

Current finance lease liabilities
Other current liabilities
 
1

 
1

Non-current operating lease liabilities
Non-current operating lease liabilities
 
164

 
189

Non-current finance lease liabilities
Non-current finance lease liabilities
 
58

 
58

Total lease liabilities
 
 
$
401

 
$
484



Schedule of Lease Cost, Income Statement Location
The following table shows the classification and location of our lease cost on our Consolidated Statements of Operations (in millions):
 
Consolidated Statement of Operations Location
 
Three Months Ended March 31,
 
 
2020
 
2019
Operating lease cost (1)
Operating costs and expenses (2)
 
$
141

 
$
137

Finance lease cost:
 
 


 
 
Amortization of right-of-use assets
Depreciation and amortization expense
 
1

 
1

Interest on lease liabilities
Interest expense, net of capitalized interest
 
2

 
2

Total lease cost
 
 
$
144

 
$
140

 
(1)
Includes $35 million and $47 million of short-term lease costs during the three months ended March 31, 2020 and 2019, respectively, and $5 million of variable lease costs paid to the lessor during each of the three months ended March 31, 2020 and 2019.
(2)
Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease.
Schedule of Maturity of Lease Liabilities
Future annual minimum lease payments for operating and finance leases as of March 31, 2020 are as follows (in millions): 
Years Ending December 31,
Operating Leases (1)
 
Finance Leases
2020
$
158

 
$
8

2021
58

 
10

2022
23

 
10

2023
22

 
10

2024
22

 
10

Thereafter
166

 
136

Total lease payments
449

 
184

Less: Interest
(107
)
 
(125
)
Present value of lease liabilities
$
342

 
$
59

 
(1)
Does not include $2.0 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of March 31, 2020 but will commence in future period primarily in the next two years and have fixed minimum lease terms of up to seven years.
Lease, Other Quantitative Information
The following table shows the weighted-average remaining lease term (in years) and the weighted-average discount rate for our operating leases and finance leases:
 
March 31, 2020
 
December 31, 2019
 
Operating Leases
 
Finance Leases
 
Operating Leases
 
Finance Leases
Weighted-average remaining lease term (in years)
9.8
 
18.4
 
8.4
 
18.7
Weighted-average discount rate (1)
5.0%
 
16.2%
 
5.2%
 
16.2%

 
(1)
The finance leases commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets.

The following table includes other quantitative information for our operating and finance leases (in millions):
 
Three Months Ended March 31,
 
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating cash flows from operating leases
$
94

 
$
90

Operating cash flows from finance leases
2

 
2

Financing cash flows from finance leases

 

Right-of-use assets obtained in exchange for new operating lease liabilities
8

 
64