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Leases
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases Leases
Supplemental Condensed Consolidated Balance Sheet information related to leases for the periods indicated, are as follows (in millions):
ClassificationSeptember 30, 2020December 31, 2019
Assets
Operating leases
Operating lease assets, net (1)$543 $615 
Finance leases
Property, plant and equipment, net (2)11 15 
Total lease assets
$554 $630 
Liabilities
Current
Operating leases
Other accrued liabilities
$131 $132 
Finance leases
Short-term debt and current portion of long-term debt
3 3 
Noncurrent
Operating leases
Long-term operating lease liabilities
485 541 
Finance leases
Long-term debt
6 10 
Total lease liabilities
$625 $686 

(1) During the first quarter of 2020, the Company concluded that a triggering event had occurred for all of its reporting units as a result of overall macroeconomic conditions and developments in the equity and credit markets primarily driven by the COVID-19 pandemic. Pursuant to the authoritative accounting literature, the Company compared the sum of the undiscounted future cash flows attributable to the asset or group of assets at the lowest level for which identifiable cash flows are available to their respective carrying amount. As a result of the impairment testing performed in connection with the triggering event, the Company recorded a non-cash impairment charge of $3 million during the three months ended March 31, 2020 in the Home Solutions segment related to the operating leases of its Yankee Candle retail store business. In addition, the Company recorded an impairment charge of $2 million in the Corporate segment to reflect a reduction in the carrying values of certain operating lease assets during the first quarter of 2020. The impairment charges were calculated by subtracting the estimated fair value of the asset group from its carrying value.

During the second quarter of 2020, the Company also concluded that a triggering event had occurred for its Home Fragrance right of use assets as a result of further deterioration of the business' financial performance, primarily driven by the COVID-19 pandemic. Pursuant to the authoritative accounting literature, the Company compared the sum of the undiscounted future cash flows attributable to the asset or group of assets at the lowest level for which identifiable cash flows are available to their respective carrying amount. As a result of the impairment testing performed in connection with the triggering event, the Company recorded a non-cash impairment charge of $5 million during the three months ended June 30, 2020 in the Home Solutions segment related to the operating leases of its Yankee Candle retail store business. The impairment charge was calculated by subtracting the estimated fair value of the asset group from its carrying value.
(2) Net of accumulated depreciation of $11 million and $8 million at September 30, 2020 and December 31, 2019.
Components of lease expense as of the date indicated, are as follows (in millions):
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2020201920202019
Operating lease cost:
Operating lease cost (1)$45 $49 $137 $156 
Variable lease costs (2)6 6 17 19 
Finance lease cost:
Amortization of leased assets1 1 3 3 
(1)Includes short-term leases, which are immaterial.
(2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales.
Remaining lease term and discount rates as of the date indicated, are as follows:
September 30, 2020
Weighted average remaining lease term (years):
Operating leases6
Finance leases3
Weighted average discount rate:
Operating leases4.3%
Finance leases3.4%
Supplemental cash flow information related to leases for the periods indicated are as follows (in millions):
Nine Months Ended
September 30,
20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$133 $153 
Operating cash flows from finance leases— 1 
Financing cash flows from finance leases3 3 
Right of use assets obtained in exchange for lease liabilities:
Operating leases53 124 
Finance leases— 7 
Maturities of lease liabilities for continuing operations at September 30, 2020, are as follows (in millions):
Operating
Leases
Finance
Leases
2020 (Excludes nine months ended September 30, 2020)$42 $1 
2021152 4 
2022130 3 
202397 1 
202476 — 
Thereafter220 — 
Total lease payments
717 9 
Less: imputed interest
(101)— 
Present value of lease liabilities
$616 $9 
Leases Leases
Supplemental Condensed Consolidated Balance Sheet information related to leases for the periods indicated, are as follows (in millions):
ClassificationSeptember 30, 2020December 31, 2019
Assets
Operating leases
Operating lease assets, net (1)$543 $615 
Finance leases
Property, plant and equipment, net (2)11 15 
Total lease assets
$554 $630 
Liabilities
Current
Operating leases
Other accrued liabilities
$131 $132 
Finance leases
Short-term debt and current portion of long-term debt
3 3 
Noncurrent
Operating leases
Long-term operating lease liabilities
485 541 
Finance leases
Long-term debt
6 10 
Total lease liabilities
$625 $686 

(1) During the first quarter of 2020, the Company concluded that a triggering event had occurred for all of its reporting units as a result of overall macroeconomic conditions and developments in the equity and credit markets primarily driven by the COVID-19 pandemic. Pursuant to the authoritative accounting literature, the Company compared the sum of the undiscounted future cash flows attributable to the asset or group of assets at the lowest level for which identifiable cash flows are available to their respective carrying amount. As a result of the impairment testing performed in connection with the triggering event, the Company recorded a non-cash impairment charge of $3 million during the three months ended March 31, 2020 in the Home Solutions segment related to the operating leases of its Yankee Candle retail store business. In addition, the Company recorded an impairment charge of $2 million in the Corporate segment to reflect a reduction in the carrying values of certain operating lease assets during the first quarter of 2020. The impairment charges were calculated by subtracting the estimated fair value of the asset group from its carrying value.

During the second quarter of 2020, the Company also concluded that a triggering event had occurred for its Home Fragrance right of use assets as a result of further deterioration of the business' financial performance, primarily driven by the COVID-19 pandemic. Pursuant to the authoritative accounting literature, the Company compared the sum of the undiscounted future cash flows attributable to the asset or group of assets at the lowest level for which identifiable cash flows are available to their respective carrying amount. As a result of the impairment testing performed in connection with the triggering event, the Company recorded a non-cash impairment charge of $5 million during the three months ended June 30, 2020 in the Home Solutions segment related to the operating leases of its Yankee Candle retail store business. The impairment charge was calculated by subtracting the estimated fair value of the asset group from its carrying value.
(2) Net of accumulated depreciation of $11 million and $8 million at September 30, 2020 and December 31, 2019.
Components of lease expense as of the date indicated, are as follows (in millions):
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2020201920202019
Operating lease cost:
Operating lease cost (1)$45 $49 $137 $156 
Variable lease costs (2)6 6 17 19 
Finance lease cost:
Amortization of leased assets1 1 3 3 
(1)Includes short-term leases, which are immaterial.
(2)Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales.
Remaining lease term and discount rates as of the date indicated, are as follows:
September 30, 2020
Weighted average remaining lease term (years):
Operating leases6
Finance leases3
Weighted average discount rate:
Operating leases4.3%
Finance leases3.4%
Supplemental cash flow information related to leases for the periods indicated are as follows (in millions):
Nine Months Ended
September 30,
20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$133 $153 
Operating cash flows from finance leases— 1 
Financing cash flows from finance leases3 3 
Right of use assets obtained in exchange for lease liabilities:
Operating leases53 124 
Finance leases— 7 
Maturities of lease liabilities for continuing operations at September 30, 2020, are as follows (in millions):
Operating
Leases
Finance
Leases
2020 (Excludes nine months ended September 30, 2020)$42 $1 
2021152 4 
2022130 3 
202397 1 
202476 — 
Thereafter220 — 
Total lease payments
717 9 
Less: imputed interest
(101)— 
Present value of lease liabilities
$616 $9