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Leasing | 12 Months Ended
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Dec. 31, 2019
Lessee Disclosure [Abstract] |
Leasing |
| 11. | LEASING
A lease contract is a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets within plant, property and equipment. Current operating lease liabilities are included in other payables and accrued liabilities, while noncurrent operating lease liabilities are included in other long-term liabilities in the Company’s consolidated balance sheet. Finance leases are included in property and equipment and long-term debt. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The right-of-use asset is a nonmonetary asset while the lease liability is a monetary liability. When accounting for a lease that is denominated in a foreign currency, the lease liability is remeasured using the current exchange rate, while the right-of-use asset is remeasured using the exchange rate as of the commencement date. The Company leases land, buildings, cars and certain equipment (including IT equipment) which have remaining lease terms between less than one year and 37 years. Certain lease contracts contain options to extend the leases by up to 30 years, which the Company has included in the lease term when it is reasonably certain for the Company to exercise that option. In addition, the Company made an accounting policy election for all the asset classes to not account for the short-term leases. A short-term lease is defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. The short-term lease election can only be made at the commencement date. Variable lease payments that depend on an index or a rate are included in the lease payments and are measured using the prevailing index or rate at the measurement date (January 1, 2019 for initial measurement of the leases existing at that date and commencement date for subsequent lease contracts). Changes to index and rate-based variable lease payments are recognized in profit or loss in the period of the change. Lease contracts with a sum of lease payments not exceeding $5,000 have been excluded from the capitalization in the balance sheet. Significant assumptions and judgements may be made in applying the requirements of lease accounting, such as the exercise of extension options and determination of discount rates. Practical expedients The Company applied the following practical expedients at standard adoption:
| 1. | Practical expedient to not separate lease and non-lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. This practical expedient was applied to the real estate (land and buildings), equipment, IT and cars.
| 2. | The package of transition practical expedients (elected as a package and applied consistently to all leases) not to reassess leases that commenced before the effective date consisting in:
| a) | No need to reassess whether any expired or existing contracts are or contain leases.
| b) | No need to reassess the lease classification for any expired or existing leases.
| c) | No need to reassess initial direct costs for any existing leases.
| 3. | The transition option allowing to not apply the new leases standard in the comparative periods presented in the financial statements in the year of adoption.
Discount rates The rate implicit in the lease should be used whenever that rate is readily determinable. In most cases, this rate is not readily determinable and the Company used its incremental borrowing rate, which was derived from information available at the lease commencement date, in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. Discount rates at implementation were established as of January 1, 2019. Going forward, due to immateriality of any intra-quarter discount rate changes, the Company will determine the discount rate based on the mid-quarter date. As of December 31, 2019, finance lease right-of-use asset was less than $1 million. The below information is presented for the operating leases only. Operating leases consisted of the following:
|  | December 31, 2019 |
Assets |  |  |  |
Right-of-use assets |  |  | 206 |
Total right-of-use assets |  |  | 206 |
Lease liabilities |  |  |  |
Current |  |  | 55 |
Noncurrent |  |  | 152 |
Total lease liabilities |  |  | 207 |
Maturities of operating lease liabilities are as follows:
|  | December 31, 2019 |
2020 |  |  | 60 |
2021 |  |  | 44 |
2022 |  |  | 31 |
2023 |  |  | 23 |
2024 |  |  | 17 |
Thereafter |  |  | 83 |
Total future undiscounted cash outflows |  |  | 258 |
Effect of discounting |  |  | (51 | )
Total operating lease liabilities |  |  | 207 |
Operating lease term and discount rate are as follows:
|  | December 31, 2019 |
Weighted average remaining lease term (in years) |  |  | 9.26 |
Weighted average discount rate |  |  | 2.79 | %
Operating lease cost and cash paid in are as follows:
|  | 2019 |
Operating lease cost |  |  | 65 |
Operating lease cash paid |  |  | 65 |

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