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LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Certain of the Company's lease agreements include rental payments adjusted periodically for inflation or a market rate which are included in the lease liabilities.



Leases	Balance Sheet Classification	September 30, 2019
Assets
Operating	Operating lease right-of-use assets	$	508
Finance	Property, plant and equipment, net (a)	37
Total lease assets		$	545

Liabilities
Current:
Operating	Current portion of long-term operating lease liabilities	$	147
Finance	Current portion of long-term debt	3
Non-current:
Operating	Long-term operating lease liabilities	405
Finance	Long-term debt	31
Total lease liabilities		$	586

(a) Finance lease assets were recorded net of accumulated amortization of $23 million as of September 30, 2019.

Lease, Cost

Components of lease cost for the three and nine months ended September 30, 2019 were as follows:



Lease cost	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019

Operating lease cost (a)	$	75	$	221
Finance lease cost:
Amortization of leased assets	1		5
Interest on lease liabilities	—		2
Net lease cost	$	76	$	228

(a) Includes short-term leases and variable lease costs (primarily maintenance fees and utilities related to real estate leases and certain equipment-related and vehicle-related costs) of $32 million and $90 million for the three and nine months ended September 30, 2019, respectively.

Rental expense for real estate, laboratory equipment and vehicles under operating leases amounted to $55 million and $167 million for the three and nine months ended September 30, 2018, respectively.

Operating Lease, Liability, Maturity

The maturity of the Company's lease liabilities as of September 30, 2019 is as follows:



Maturity of lease liabilities	Operating leases		Finance leases		Total
Remainder of 2019	$	32	$	1	$	33
2020	155		6		161
2021	118		5		123
2022	93		5		98
2023	74		3		77
Thereafter	138		35		173
Total lease payments	610		55		665
Less: Interest (a)	58		21		79
Present value of lease liabilities	$	552	$	34	$	586

(a) Primarily calculated using the Company's incremental borrowing rate.

Finance Lease, Liability, Maturity

The maturity of the Company's lease liabilities as of September 30, 2019 is as follows:



Maturity of lease liabilities	Operating leases		Finance leases		Total
Remainder of 2019	$	32	$	1	$	33
2020	155		6		161
2021	118		5		123
2022	93		5		98
2023	74		3		77
Thereafter	138		35		173
Total lease payments	610		55		665
Less: Interest (a)	58		21		79
Present value of lease liabilities	$	552	$	34	$	586

(a) Primarily calculated using the Company's incremental borrowing rate.

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum rental commitments under noncancelable operating leases, primarily real estate, in effect as of December 31, 2018 are as follows:



Year Ending December 31,
2019	$	181
2020	143
2021	106
2022	79
2023	60
Thereafter	122
Minimum lease payments	$	691

Schedule of Lease Term and Discount Rate

Lease term and discount rate as of September 30, 2019 were as follows:



Lease term and discount rate
Weighted-average remaining lease term (years):
Operating leases	5
Finance leases	12

Weighted-average discount rate:
Operating leases	3.3	%
Finance leases	8.7	%