LEASES

6 Months Ended

Jun. 30, 2019

Eaton leases certain manufacturing facilities, warehouses, distribution centers, office space, vehicles and equipment. Most real estate leases contain renewal options. The exercise of lease renewal options is at the Company's sole discretion. The Company's lease agreements typically do not contain any significant guarantees of asset values at the end of a lease or restrictive covenants. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The components of lease expense follows:



	Three months ended June 30, 2019			Six months ended June 30, 2019
Operating lease cost	$	36		$	78
Finance lease cost:
Amortization of lease assets	1			2
Interest on lease liabilities	1			1
Short-term lease cost	14			27
Variable lease cost	7			11
Sublease income	(1		)	(2		)
Total lease cost	$	58		$	117

The net amount recorded on sale leaseback transactions for the three and six months ended June 30, 2019 were losses of $2 and gains of $16, respectively.

Supplemental cash flow information related to leases follows:



	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	(76	)
Operating cash outflows - interest payments on finance leases	(1		)
Financing cash outflows - payments on finance lease obligations	(2		)

Lease assets obtained in exchange for new lease obligations:
Operating leases	$	42
Finance leases	12

Supplemental balance sheet information related to leases follows:



	June 30, 2019
Operating Leases
Operating lease assets	$	419

Other current liabilities	121
Operating lease liabilities	311
Total operating lease liabilities	$	432

Finance Leases
Land and buildings	$	18
Machinery and equipment	12
Accumulated depreciation	(13		)
Net property, plant and equipment	$	17

Current portion of long-term debt	$	5
Long-term debt	13
Total finance lease liabilities	$	18

Weighted-average remaining lease term
Operating leases	5.2 years
Finance leases	4.1 years

Weighted-average discount rate
Operating leases	3.6		%
Finance leases	6.1		%

Maturities of lease liabilities at June 30, 2019 follows:



	Operating Leases		Finance Leases
2019	$	74	$	3
2020	126		6
2021	94		5
2022	63		3
2023	43		3
Thereafter	87		1
Total lease payments	$	487	$	21
Less imputed interest	55		3
Total present value of lease liabilities	$	432	$	18

A summary of minimum rental commitments at December 31, 2018 under noncancelable operating leases, which expire at various dates and in most cases contain renewal options, for each of the next five years and thereafter in the aggregate, follow:



	Operating Leases
2019	$	165
2020	133
2021	106
2022	75
2023	53
Thereafter	110
Total lease commitments	$	642