Leases

12 Months Ended

Dec. 31, 2020

LEASES

Our operating leases consist primarily of properties and equipment for our administrative, manufacturing and R&D activities. Some of our leases include options to extend the terms for up to 15 years and some include options to terminate the lease within one year after the lease commencement date. As of December 31, 2020 and 2019, we did not have material finance leases. Operating lease expense, including variable costs and short-term leases, was $171 million and $162 million in 2020 and 2019, respectively. Operating lease expense under the prior lease accounting standard was $109 million in 2018.

The following table summarizes balance sheet and other information related to our operating leases:


		December 31,
(in millions, except weighted average amounts)	Classification	2020			2019
Right-of-use assets, net	Other long-term assets	$	646		$	668
Lease liabilities - current	Other accrued liabilities	$	107		$	99
Lease liabilities - noncurrent	Other long-term obligations	$	608		$	626
Weighted average remaining lease term		8.6 years			8.7 years
Weighted average discount rate		3.32		%	3.47		%

The following table summarizes other supplemental information related to our operating leases:


	Year Ended December 31,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities	$	66	$	66
Right-of-use assets obtained in exchange for lease liabilities	$	88	$	313

The following table summarizes a maturity analysis of our operating lease liabilities showing the aggregate lease payments as of December 31, 2020:


(in millions)	Amount
2021	$	127
2022	122
2023	112
2024	97
2025	70
Thereafter	300
Total undiscounted lease payments	828
Less: imputed interest	113
Total discounted lease payments	$	715