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Leases (Tables)

6 Months Ended

Jun. 30, 2019

The components of lease expense were as follows:



	For the Three Months Ended June 30, 2019
(In millions)	Vehicles		Buildings		Other		Total
Operating lease costs ⁽¹⁾	$	8	$	1	$	3	$	12

Finance lease costs:
Amortization of right-of-use assets	4		—		—		4
Interest on lease liabilities	1		1		—		2
Total finance lease cost	5		1		—		6

Total lease cost	$	13	$	2	$	3	$	18

⁽¹⁾ Includes $2 million of short-term lease costs.



	For the Six Months Ended June 30, 2019
(In millions)	Vehicles		Buildings		Other		Total
Operating lease costs ⁽¹⁾	$	15	$	3	$	6	$	24

Finance lease costs:
Amortization of right-of-use assets	8		—		1		9
Interest on lease liabilities	2		2		—		4
Total finance lease cost	10		2		1		13

Total lease cost	$	25	$	5	$	7	$	37

⁽¹⁾ Includes $6 million of short-term lease costs.

Supplemental cash flow information related to leases was as follows:



(In millions)	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	7	$	15
Operating cash flows from finance leases	2		3
Finance cash flows from finance leases	5		9

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	20	$	26
Finance leases	1		2

Lease terms and discount rates were as follows:



	As of June 30, 2019
Weighted-average remaining lease terms (years)
Operating leases	8.57
Finance leases	4.75

Weighted-average discount rate ⁽¹⁾
Operating leases	4.91	%
Finance leases	3.45	%

⁽¹⁾When an implicit rate is not readily determinable, an incremental borrowing rate is utilized, determining the present value of lease payments. The rate is determined based on expected term and information available at the commencement date.

Supplemental balance sheet information related to leases was as follows:



(In millions)	Financial Statement Line Item	As of June 30, 2019

Assets
Operating lease assets, net of accumulated amortization of $11 million	Deferred charges and other assets	$	188
Finance lease assets, net of accumulated amortization of $89 million	Property, plant and equipment	74
Total leased assets		$	262

Liabilities
Current:
Operating	Other current liabilities	$	31
Finance	Currently payable long-term debt	16

Noncurrent:
Operating	Other noncurrent liabilities	196
Finance	Long-term debt and other long-term obligations	51
Total leased liabilities		$	294

Maturity of Operating Lease Liabilities

Maturities of lease liabilities as of June 30, 2019, were as follows:



(In millions)	Operating Leases			Finance Leases			Total
2019	$	18		$	11		$	29
2020	38			19			57
2021	36			17			53
2022	35			15			50
2023	32			8			40
2024	27			4			31
Thereafter	99			12			111
Total lease payments ⁽¹⁾	285			86			371
Less imputed interest	(58		)	(19		)	(77		)
Total net present value	$	227		$	67		$	294

⁽¹⁾Operating lease payments for certain leases are offset by sublease receipts of $13 million over 14 years.

Maturity of Finance Lease Liabilities

Maturities of lease liabilities as of June 30, 2019, were as follows:



(In millions)	Operating Leases			Finance Leases			Total
2019	$	18		$	11		$	29
2020	38			19			57
2021	36			17			53
2022	35			15			50
2023	32			8			40
2024	27			4			31
Thereafter	99			12			111
Total lease payments ⁽¹⁾	285			86			371
Less imputed interest	(58		)	(19		)	(77		)
Total net present value	$	227		$	67		$	294

⁽¹⁾Operating lease payments for certain leases are offset by sublease receipts of $13 million over 14 years.

Schedule of Future Minimum Capital Lease Payments

The future minimum capital lease payments as of December 31, 2018, as reported in the Annual Report on Form 10-K for the year ended December 31, 2018 under ASC 840 ”Leases” are as follows:



Capital Leases
	(In millions)
2019	$	24
2020	19
2021	16
2022	13
2023	8
Years thereafter	16
Total minimum lease payments	96
Interest portion	(23		)
Present value of net minimum lease payments	73
Less current portion	18
Noncurrent portion	$	55

Schedule of Future Minimum Operating Lease Payments

The future minimum operating lease payments as of December 31, 2018, as reported in the Annual Report on Form 10-K for the year ended December 31, 2018 under ASC 840 ”Leases” are as follows:



Operating Leases
	(In millions)
2019	$	34
2020	36
2021	34
2022	30
2023	28
Years thereafter	127
Total minimum lease payments	$	289