As discussed in Note 2, the Company adopted ASU No. 2016-02, Leases (Topic 842), effective January 1, 2019. The Company is party to operating leases for the majority of its manufacturing sites, offices, engineering and lab sites, stocking locations, warehouses, automobiles, and certain equipment. Certain of the Company’s real estate leases include variable rental payments which adjust periodically based on inflation, and certain automobile lease agreements include rental payments which fluctuate based on mileage. Generally, the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease costs for the years ended December 31, 2020 and 2019 consisted of the following:


	Years Ended December 31,
	2020		2019
Selling, general and administrative expenses	$	44	$	37
Cost of goods sold		17		16
Total operating lease costs	$	61	$	53

Total operating lease costs include variable lease costs of $16 million and $11 million for the years ended December 31, 2020 and 2019, respectively. Total operating lease costs also include offsetting sub-lease income which is immaterial for the years ended December 31, 2020 and 2019.

	Financial Statement Line Item	At December 31, 2020	At December 31, 2019
Operating right-of-use assets	Other assets	$133	$137
Operating lease liabilities - current	Accrued liabilities	$33	$31
Operating lease liabilities - non-current	Other liabilities	$107	$111

	At December 31, 2020
2021	$	40
2022		36
2023		29
2024		18
2025		12
Thereafter		30
Total lease payments		165
Less: Imputed interest		25
Present value of operating lease liabilities	$	140
Weighted-average remaining lease term (years)		5.43
Weighted-average incremental borrowing rate		5.88	%

Supplemental cash flow information related to the Company’s operating leases was as follows:

	Years Ended December 31,
	2020		2019
Operating cash outflows	$	30	$	35
Operating right-of-use assets obtained in exchange for operating lease liabilities	$	26	$	60

As of December 31, 2020, the Company has additional operating leases that have not yet commenced. Obligations under these leases are not material. Additionally, as a lessor, the Company leases all or a portion of certain owned properties. Rental income for the years ended December 31, 2020 and 2019 was not material.