LEASES (Notes)

12 Months Ended

Dec. 31, 2019

LEASES

See Note 2 for the Company's accounting policy related to leases.

The Company has operating leases for office space, data centers and the land for Booking.com's future headquarters (see Note 16). As of December 31, 2019, the Company’s weighted-average discount rate and weighted-average remaining lease term were approximately 2.0% and 7.8 years, respectively. The Company had no finance leases as of December 31, 2019.

The Company recognized the following related to leases in its Consolidated Balance Sheet at December 31, 2019 (in millions):



	Classification in Consolidated Balance Sheet	December 31, 2019
Operating lease assets	Operating lease assets	$	620
Lease Liabilities:
Current operating lease liabilities	Accrued expenses and other current liabilities	$	161
Non-current operating lease liabilities	Operating lease liabilities	462
Total operating lease liabilities		$	623

As of December 31, 2019, the operating lease liabilities will mature over the following periods (in millions):



2020	$	172
2021	151
2022	100
2023	62
2024	42
Thereafter	163
Total remaining lease payments	$	690
Less: Imputed interest	(67		)
Total operating lease liabilities	$	623

As of December 31, 2019, the Company has entered into leases that have not yet commenced with future lease payments of approximately $10 million which are not reflected in the table above. These leases will commence by 2021 with lease terms of up to 5 years and will be recognized upon lease commencement. In addition, the Company entered into an

agreement to sign a future lease in the city of Manchester in the United Kingdom for the future headquarters of Rentalcars.com (see Note 16).

At December 31, 2018, minimum lease payments for operating leases having an initial term in excess of one year under the previous lease standard ("ASC 840") were as follows (in millions):



2019	$	164
2020	142
2021	110
2022	66
2023	52
Thereafter	190
Total minimum lease payments	$	724

The Company recognized the following related to operating leases in its Consolidated Statement of Operations (in millions):



	Classification in Consolidated Statement of Operations	Year Ended December 31, 2019
Lease expense	General and administrative and Information technology	$	183
Variable lease expense	General and administrative and Information technology	56
Less: Sublease income	General and administrative	(2		)
Total lease expense, net of sublease income		$	237

For the years ended December 31, 2018 and 2017, the Company recognized lease expense of $149 million and $120 million, respectively, under ASC 840.

Supplemental cash flow information related to operating leases is as follows (in millions):



	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	189
Operating lease assets obtained in exchange for operating lease liabilities	155

"Operating lease amortization" presented in the operating activities section of the Consolidated Statement of Cash Flows reflects the portion of the operating lease expense from the amortization of the operating lease assets.