Accrued Liabilities and Other

12 Months Ended

Dec. 31, 2019

Note 9 – Accrued Liabilities and Other

As of December 31, 2019 and 2018, accrued liabilities and other current liabilities consisted of the following (in millions):

	December 31,		December 31,
	2019		2018
Accrued purchases (1)	$	638	$	394
Payroll and related costs		466		449
Taxes payable (2)		611		348
Accrued interest		86		78
Financing obligation, current portion		57		62
Accrued warranty, current portion		344		201
Sales return reserve, current portion		272		108
Build-to-suit lease liability, current portion		—		82
Operating lease right-of-use liabilities, current portion		228		—
Other current liabilities		203		372
Total	$	2,905	$	2,094

(1)	Accrued purchases primarily reflects receipts of goods and services that we had not been invoiced yet. As we are invoiced for these goods and services, this balance will reduce and accounts payable will increase.

(2)	Taxes payable includes value added tax, sales tax, property tax, use tax and income tax payables.

Due to price adjustments we made to our vehicle offerings during 2019, we increased our sales return reserve significantly on vehicles previously sold under our buyback options program. See Note 2, Summary of Significant Accounting Policies for details.

As of December 31, 2018, the table above included $82 million of current build-to-suit lease liabilities. As a result of the adoption of the new lease standard on January 1, 2019, we have de-recognized all build-to-suit lease liabilities and have reassessed these leases to be operating lease right-of-use liabilities as of December 31, 2019.