Leases

12 Months Ended

Dec. 31, 2020

Note 15 – Leases

We are a lessee through noncancellable lease agreements for property and equipment consisting primarily of buildings, land, vehicles, and equipment used in both our operations and administrative functions.


	Year Ended December 31,
	2020		2019
	(Millions)
Lease Cost:
Operating lease cost	$	37	$	40

Variable lease cost	19		27
Sublease income	(1)		(2)
Total lease cost	$	55	$	65
Cash paid for amounts included in the measurement of operating lease liabilities	$	30	$	39
	December 31,
	2020		2019
	(Millions)
Other Information:
Right-of-use asset (included in Regulatory assets, deferred charges, and other in the Consolidated Balance Sheet)	$	182	$	207
Operating lease liabilities:
Current (included in Accrued liabilities in the Consolidated Balance Sheet)	$	28	$	21
Noncurrent (included in Regulatory liabilities, deferred income, and other in the Consolidated Balance Sheet)	$	161	$	188
Weighted-average remaining lease term – operating leases (years)	13		13
Weighted-average discount rate – operating leases	4.60%		4.61%

Prior to adopting ASU 2016-02 “Leases (Topic 842)”, which was effective January 1, 2019, total rent expense was $73 million in 2018 and primarily included in Operating and maintenance expenses and Selling, general, and administrative expenses in the Consolidated Statement of Operations.

As of December 31, 2020, the following table represents our operating lease maturities, including renewal provisions that we have assessed as being reasonably certain of exercise, for each of the years ended December 31:


	(Millions)
2021	$	34
2022	28
2023	23
2024	19
2025	17
Thereafter	140
Total future lease payments	261
Less amount representing interest	72
Total obligations under operating leases	$	189

We are the lessor to certain lease agreements for office space in our headquarters building, which are insignificant to our financial statements.