Leases (Tables)
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12 Months Ended |
Dec. 31, 2020 |
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| Leases [Abstract] |
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| Schedule of Operating and Financing Leases Presented in Balance Sheets |
The balances for the operating and finance leases where we are the lessee are presented as follows (in millions) within our consolidated balance sheet:
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December 31, 2020 |
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|
December 31, 2019 |
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Operating leases: |
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|
|
|
|
|
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Operating lease right-of-use assets |
|
$ |
1,558 |
|
|
$ |
1,218 |
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|
|
|
|
|
|
|
|
|
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Accrued liabilities and other |
|
$ |
286 |
|
|
$ |
228 |
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|
Other long-term liabilities |
|
|
1,254 |
|
|
|
956 |
|
|
Total operating lease liabilities |
|
$ |
1,540 |
|
|
$ |
1,184 |
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|
|
|
|
|
|
|
|
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Finance leases: |
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Solar energy systems, net |
|
$ |
29 |
|
|
$ |
30 |
|
|
Property, plant and equipment, net |
|
|
1,465 |
|
|
|
1,600 |
|
|
Total finance lease assets |
|
$ |
1,494 |
|
|
$ |
1,630 |
|
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|
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|
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Current portion of long-term debt and finance leases |
|
$ |
374 |
|
|
$ |
386 |
|
|
Long-term debt and finance leases, net of current portion |
|
|
1,094 |
|
|
|
1,232 |
|
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Total finance lease liabilities |
|
$ |
1,468 |
|
|
$ |
1,618 |
|
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| Schedule of Components of Lease Expense and Other Information Related to Leases |
The components of lease expense are as follows (in millions) within our consolidated statements of operations:
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Year Ended |
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December 31, 2020 |
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December 31, 2019 |
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Operating lease expense: |
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|
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|
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Operating lease expense (1) |
|
$ |
451 |
|
|
$ |
426 |
|
|
|
|
|
|
|
|
|
|
|
|
Finance lease expense: |
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|
|
|
|
|
|
|
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Amortization of leased assets |
|
$ |
348 |
|
|
$ |
299 |
|
|
Interest on lease liabilities |
|
|
100 |
|
|
|
104 |
|
|
Total finance lease expense |
|
$ |
448 |
|
|
$ |
403 |
|
|
|
|
|
|
|
|
|
|
|
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Total lease expense |
|
$ |
899 |
|
|
$ |
829 |
|
|
(1) |
Includes short-term leases and variable lease costs, which are immaterial. |
Other information related to leases where we are the lessee is as follows:
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December 31, 2020 |
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|
December 31, 2019 |
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Weighted-average remaining lease term: |
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|
|
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Operating leases |
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6.2 years |
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6.2 years |
|
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Finance leases |
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4.9 years |
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3.9 years |
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Weighted-average discount rate: |
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|
|
|
|
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Operating leases |
|
|
5.8 |
% |
|
|
6.5 |
% |
|
Finance leases |
|
|
6.5 |
% |
|
|
6.5 |
% |
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| Supplemental Cash Flow Information Related to Leases |
Supplemental cash flow information related to leases where we are the lessee is as follows (in millions):
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|
Year Ended |
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|
|
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December 31, 2020 |
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|
December 31, 2019 |
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|
Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash outflows from operating leases |
|
$ |
456 |
|
|
$ |
396 |
|
|
Operating cash outflows from finance leases (interest payments) |
|
$ |
100 |
|
|
$ |
104 |
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|
Financing cash outflows from finance leases |
|
$ |
338 |
|
|
$ |
321 |
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|
Leased assets obtained in exchange for finance lease liabilities |
|
$ |
188 |
|
|
$ |
616 |
|
|
Leased assets obtained in exchange for operating lease liabilities |
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$ |
553 |
|
|
$ |
202 |
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| Schedule of Maturities of Operating and Finance Lease Liabilities |
As of December 31, 2020, the maturities of our operating and finance lease liabilities (excluding short-term leases) are as follows (in millions):
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Operating |
|
|
Finance |
|
|
|
|
Leases |
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|
Leases |
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|
2021 |
|
$ |
366 |
|
|
$ |
462 |
|
|
2022 |
|
|
327 |
|
|
|
446 |
|
|
2023 |
|
|
279 |
|
|
|
412 |
|
|
2024 |
|
|
245 |
|
|
|
299 |
|
|
2025 |
|
|
204 |
|
|
|
9 |
|
|
Thereafter |
|
|
425 |
|
|
|
7 |
|
|
Total minimum lease payments |
|
|
1,846 |
|
|
|
1,635 |
|
|
Less: Interest |
|
|
306 |
|
|
|
167 |
|
|
Present value of lease obligations |
|
|
1,540 |
|
|
|
1,468 |
|
|
Less: Current portion |
|
|
286 |
|
|
|
374 |
|
|
Long-term portion of lease obligations |
|
$ |
1,254 |
|
|
$ |
1,094 |
|
|
| Maturities of Operating Lease and Sales-Type Lease Receivables from Customers |
Operating Lease and Sales-type Lease Receivables
We are the lessor of certain vehicle and solar energy system arrangements as described in Note 2, Summary of Significant Accounting Policies. As of December 31, 2020, maturities of our operating lease and sales-type lease receivables from customers for each of the next five years and thereafter were as follows (in millions):
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Operating |
|
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Sales-type |
|
|
|
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Leases |
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|
Leases |
|
|
2021 |
|
$ |
774 |
|
|
$ |
21 |
|
|
2022 |
|
|
594 |
|
|
|
21 |
|
|
2023 |
|
|
351 |
|
|
|
21 |
|
|
2024 |
|
|
206 |
|
|
|
30 |
|
|
2025 |
|
|
191 |
|
|
|
5 |
|
|
Thereafter |
|
|
2,102 |
|
|
|
4 |
|
|
Gross lease receivables |
|
$ |
4,218 |
|
|
$ |
102 |
|
|
| Schedule of Lease Receivables Relating to Sales-Type Leases |
Net Investment in Sales-type Leases
Net investment in sales-type leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated balance sheet as a component of prepaid expenses and other current assets for the current portion and as other assets for the long-term portion. We introduced sales-type leasing programs in volume during the third quarter of 2020 and therefore have no associated balances as of December 31, 2019. Lease receivables relating to sales-type leases are presented on the consolidated balance sheet as follows (in millions):
|
|
|
December 31, |
|
|
|
|
2020 |
|
|
Gross lease receivables |
|
$ |
102 |
|
|
Unearned interest income |
|
|
(11 |
) |
|
Net investment in sales-type leases |
|
$ |
91 |
|
|
|
|
|
|
|
|
Reported as: |
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|
|
|
|
Prepaid expenses and other current assets |
|
$ |
17 |
|
|
Other assets |
|
|
74 |
|
|
Net investment in sales-type leases |
|
$ |
91 |
|
|