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Leases (Tables)

9 Months Ended

Sep. 30, 2019

The components of lease expense were as follows:



	For the Three Months Ended September 30, 2019
(In millions)	Vehicles		Buildings		Other		Total
Operating lease costs ⁽¹⁾	$	5	$	3	$	3	$	11

Finance lease costs:
Amortization of right-of-use assets	4		—		—		4
Interest on lease liabilities	—		—		—		—
Total finance lease cost	4		—		—		4
Total lease cost	$	9	$	3	$	3	$	15

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



	For the Nine Months Ended September 30, 2019
(In millions)	Vehicles		Buildings		Other		Total
Operating lease costs ⁽¹⁾	$	20	$	6	$	9	$	35

Finance lease costs:
Amortization of right-of-use assets	12		—		1		13
Interest on lease liabilities	2		2		—		4
Total finance lease cost	14		2		1		17
Total lease cost	$	34	$	8	$	10	$	52

⁽¹⁾ Includes $8 million of short-term lease costs.

Supplemental cash flow information related to leases was as follows:



(In millions)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4	$	19
Operating cash flows from finance leases	1		4
Finance cash flows from finance leases	12		21

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	47	$	73
Finance leases	—		2

Lease terms and discount rates were as follows:



	As of September 30, 2019
Weighted-average remaining lease terms (years)
Operating leases	8.39
Finance leases	4.66

Weighted-average discount rate ⁽¹⁾
Operating leases	4.76	%
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 September 30, 2019

Assets
Operating lease assets, net of accumulated amortization of $17 million	Deferred charges and other assets	$	200
Finance lease assets, net of accumulated amortization of $91 million	Property, plant and equipment	76
Total leased assets		$	276

Liabilities
Current:
Operating	Other current liabilities	$	34
Finance	Currently payable long-term debt	16

Noncurrent:
Operating	Other noncurrent liabilities	212
Finance	Long-term debt and other long-term obligations	47
Total leased liabilities		$	309

Maturity of Operating Lease Liabilities

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



(In millions)	Operating Leases			Finance Leases			Total
2019	$	8		$	12		$	20
2020	42			19			61
2021	40			17			57
2022	39			15			54
2023	35			8			43
2024	30			4			34
Thereafter	108			12			120
Total lease payments ⁽¹⁾	302			87			389
Less imputed interest	(56		)	(24		)	(80		)
Total net present value	$	246		$	63		$	309

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

Maturity of Finance Lease Liabilities

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



(In millions)	Operating Leases			Finance Leases			Total
2019	$	8		$	12		$	20
2020	42			19			61
2021	40			17			57
2022	39			15			54
2023	35			8			43
2024	30			4			34
Thereafter	108			12			120
Total lease payments ⁽¹⁾	302			87			389
Less imputed interest	(56		)	(24		)	(80		)
Total net present value	$	246		$	63		$	309

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