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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | 16. Leases We lease certain locomotives, freight cars, and other property for use in our rail operations. We determine if an arrangement is or contains a lease at inception. We have lease agreements with lease and non-lease components and we have elected to not separate lease and non-lease components for all classes of underlying assets. Leases with an initial term of 12 months or less are not recorded on our Consolidated Statements of Financial Position; we recognize lease expense for these leases on a straight-line basis over the lease term. Leases with initial terms in excess of 12 months are recorded as operating or financing leases in our Consolidated Statements of Financial Position. Operating leases are included in operating lease assets, accounts payable and other current liabilities, and operating lease liabilities on our Consolidated Statements of Financial Position. Finance leases are included in net properties, debt due within one year, and debt due after one year on our Consolidated Statements of Financial Position. Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use a collateralized incremental borrowing rate for all operating leases based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Operating lease expense is recognized on a straight-line basis over the lease term and reported in equipment and other rents, and financing lease expense is recorded as depreciation and interest expense in our Consolidated Statements of Income. The following are additional details related to our lease portfolio:
|  | Dec. 31, | Dec. 31,
Millions | Classification | 2020 | 2019
Assets |  |  |  |  |
Operating leases | Operating lease assets | $ | 1,610 | $ | 1,812
Finance leases | Net properties [a] |  | 370 |  | 468
Total leased assets |  | $ | 1,980 | $ | 2,280
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Accounts payable and other current liabilities | $ | 321 | $ | 362
Finance | Debt due within one year |  | 109 |  | 114
Noncurrent |  |  |  |  |
Operating | Operating lease liabilities |  | 1,283 |  | 1,471
Finance | Debt due after one year |  | 340 |  | 491
Total lease liabilities |  | $ | 2,053 | $ | 2,438
[a] Finance lease assets are recorded net of accumulated amortization of $737 million and $797 million as of December 31, 2020 and 2019, respectively. The lease cost components are classified as follows:
|  | Dec. 31, | Dec. 31,
Millions | Classification | 2020 | 2019
Operating lease cost [a] | Equipment and other rents | $ | 247 | $ | 305
Operating lease cost [a] | Purchased services and materials |  | 40 |  | 40
Operating lease cost [a] | Capitalized in net properties |  | 30 |  | 21
Finance lease cost |  |  |  |  |
Amortization of leased assets | Depreciation |  | 66 |  | 72
Interest on lease liabilities | Interest expense |  | 27 |  | 34
Net lease cost |  | $ | 410 | $ | 472
[a] In addition to the lease cost components referenced above, we had short-term lease costs of $26 million and $27 million as of December 31, 2020 and 2019, respectively, and variable lease costs of $10 million and $12 million as of December 31, 2020 and 2019, respectively. The following table presents aggregate lease maturities as of December 31, 2020:
Millions |  | Operating Leases |  | Finance Leases |  | Total
2021 | $ | 325 | $ | 135 | $ | 460
2022 |  | 273 |  | 111 |  | 384
2023 |  | 229 |  | 81 |  | 310
2024 |  | 220 |  | 68 |  | 288
2025 |  | 216 |  | 45 |  | 261
After 2025 |  | 567 |  | 77 |  | 644
Total lease payments | $ | 1,830 | $ | 517 | $ | 2,347
Less: Interest |  | 226 |  | 68 |  | 294
Present value of lease liabilities | $ | 1,604 | $ | 449 | $ | 2,053
The following table presents the weighted average remaining lease term and discount rate:
| Dec. 31,
| 2020
Weighted-average remaining lease term (years) |  |
Operating leases |  | 7.9
Finance leases |  | 5.2
Weighted-average discount rate (%) |  |
Operating leases |  | 3.7
Finance leases |  | 5.1
The following table presents other information related to our operating and finance leases for the year ended December 31:
Millions | 2020 | 2019
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases | $ | 323 | $ | 387
Investing cash flows from operating leases |  | 30 |  | 21
Operating cash flows from finance leases |  | 29 |  | 35
Financing cash flows from finance leases |  | 113 |  | 112
Leased assets obtained in exchange for finance lease liabilities |  | - |  | -
Leased assets obtained in exchange for operating lease liabilities |  | 93 |  | 118

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- References No definition available. + Details
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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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