Leases

12 Months Ended

Dec. 31, 2020

Leases

Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 30 years (land leases 48 to 90 years), some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. As of December 31, 2020, assets recorded under finance leases amounted to $82 million and accumulated depreciation associated with finance leases was $12 million (2019: $82 million and $9 million, respectively). Finance lease liabilities amounted to $24 million as of December 31, 2020 (December 31, 2019: $25 million).

The components of operating lease expense were as follows


	2020		2019

Operating lease cost	65		59

Other information related to operating leases was as follows:

Supplemental cash flows information:
Operating cash flows from operating leases	63		53




Right-of-use assets obtained in exchange for lease obligations 1)	50		279


1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.

Weighted average remaining lease term	6 years		6 years


Weighted average discount rate:	3	%	3	%

Future minimum lease payments for operating leases as of December 31, 2020 were as follows:


			As of
			December 31, 2020

2021			64
2022			50
2023			44
2024			28
2025			23
Thereafter			47
Total future minimum lease payments			256
Less: imputed interest			(19)
Total			237

Rent expense amounted to $9 million in 2020 compared to $12 million in 2019 (containing as from 2019 only services related to leased assets as well as short-term leases) and $57 million in 2018 (containing all leases of land and buildings and other equipment as well as related services).

Lease liabilities related to operating leases are split between current and non-current:


	As of December 31,
	2020	2019

Other current liabilities	60	62
Other non-current liabilities	177	176
Total	237	238

Operating lease right-of-use assets are $223 million as of December 31, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the consolidated balance sheet.

Leases finance

Leases

The components of operating lease expense were as follows


	2020		2019

Operating lease cost	65		59

Other information related to operating leases was as follows:

Supplemental cash flows information:
Operating cash flows from operating leases	63		53




Right-of-use assets obtained in exchange for lease obligations 1)	50		279


1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.

Weighted average remaining lease term	6 years		6 years


Weighted average discount rate:	3	%	3	%

Future minimum lease payments for operating leases as of December 31, 2020 were as follows:


			As of
			December 31, 2020

2021			64
2022			50
2023			44
2024			28
2025			23
Thereafter			47
Total future minimum lease payments			256
Less: imputed interest			(19)
Total			237

Lease liabilities related to operating leases are split between current and non-current:


	As of December 31,
	2020	2019

Other current liabilities	60	62
Other non-current liabilities	177	176
Total	237	238

Operating lease right-of-use assets are $223 million as of December 31, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the consolidated balance sheet.