Leases (Notes)

12 Months Ended

Dec. 31, 2020

17. Leases

Lessee

Following are components of our lease cost:


	Year Ended December 31,
	2020		2019
	(In millions)
Operating leases	$	55	$	136
Short-term and variable leases	101		92
Total lease cost(a)	$	156	$	228

(a)2020 and 2019 amounts include $25 million and $46 million of capitalized lease costs.

Other information related to our operating leases are as follows:


	Year Ended December 31,
	2020			2019
	(In millions, except lease term and discount rate)
Operating cash flows from operating leases	$	(131)		$	(182)
Investing cash flows from operating leases	(25)			(46)
ROU assets obtained in exchange for operating lease obligations, net of retirements adjusted for currency conversion	20			102
Amortization of ROU assets	46			75
Removal of ROU assets and liabilities associated with the KML and U.S. Cochin Sale	—			(394)

Weighted average remaining lease term	11.56 years			13.40 years
Weighted average discount rate	4.27		%	4.31		%

Amounts recognized in the accompanying consolidated balance sheet are as follows:


		December 31,
Lease Activity	Balance sheet location	2020		2019
		(In millions)
ROU assets	Deferred charges and other assets	$	303	$	329
Short-term lease liability	Other current liabilities	40		40
Long-term lease liability	Other long-term liabilities and deferred credits	263		289
Finance lease assets	Property, plant and equipment, net	1		2
Finance lease liabilities	Long-term debt—Outstanding	1		2

Operating lease liabilities under non-cancellable leases (excluding short-term leases) as of December 31, 2020 are as follows:


Year	Commitment
	(In millions)
2021	$	53
2022	46
2023	38
2024	34
2025	30
Thereafter	211
Total lease payments	412
Less: Interest	(109)
Present value of lease liabilities	$	303

Short-term lease costs are not material to us and are anticipated to be similar to the current year short-term lease expense outlined in this disclosure.