Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

v3.19.3
Leases (Tables)
9 Months Ended
Sep. 30, 2019
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
 
September 30, 2019
Right-of-use assets—Operating
Operating lease assets, net
 
$
493

Right-of-use assets—Financing
Property, plant and equipment, net
 
57

Total right-of-use assets
 
 
$
550

 
 
 
 
Current operating lease liabilities
Current operating lease liabilities
 
$
275

Current finance lease liabilities
Other current liabilities
 
2

Non-current operating lease liabilities
Non-current operating lease liabilities
 
203

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

Total lease liabilities
 
 
$
538



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 September 30, 2019
 
Nine Months Ended September 30, 2019
Operating lease cost (1)
Operating costs and expenses (2)
 
$
163

 
$
440

Finance lease cost:
 
 
 
 
 
Amortization of right-of-use assets
Depreciation and amortization expense
 
1

 
3

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

 
7

Total lease cost
 
 
$
166

 
$
450

 
(1)
Includes $57 million and $150 million of short-term lease costs and $8 million and $21 million of variable lease costs incurred during the three and nine months ended September 30, 2019, respectively.
(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 September 30, 2019 are as follows (in millions): 
Years Ending December 31,
Operating Leases (1)
 
Finance Leases
2019
$
113

 
$
5

2020
218

 
10

2021
51

 
10

2022
19

 
10

2023
19

 
10

Thereafter
166

 
146

Total lease payments
586

 
191

Less: Interest
(106
)
 
(129
)
Present value of lease liabilities
$
480

 
$
62

 
(1)
Does not include $1.6 billion of legally binding minimum lease payments for vessel charters which were executed as of September 30, 2019 but will commence primarily between 2020 and 2021 and have fixed minimum lease terms of up to seven years.

Future annual minimum lease payments for operating and capital leases as of December 31, 2018, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows (in millions):
Years Ending December 31,
Operating Leases (1)
 
Capital Leases (2)
2019 (3)
$
380

 
$
5

2020
184

 
5

2021
238

 
5

2022
264

 
5

2023
264

 
5

Thereafter
999

 
73

Total lease payments
2,329

 
98

Less: Interest

 
(39
)
Present value of lease liabilities
$
2,329

 
$
59

 
(1)
Includes certain lease option renewals that are reasonably assured and payments for certain non-lease components. Also includes $79 million in payments for short-term leases and $1.6 billion in payments for LNG vessel charters which were previously executed but will commence primarily between 2020 and 2021.
(2)
Does not include payments for non-lease components of $98 million.
(3)
Does not include $43 million in aggregate payments we will receive from our LNG vessel subcharters.
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:
 
September 30, 2019
 
Operating Leases
 
Finance Leases
Weighted-average remaining lease term (in years)
7.1
 
18.9
Weighted-average discount rate (1)
5.3%
 
16.2%
 
(1)
The finance leases commenced prior to the adoption of ASC 842. 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):
 
Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
280

Operating cash flows from finance leases
6

Financing cash flows from finance leases

Right-of-use assets obtained in exchange for new operating lease liabilities
189