Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leases

Lessee

The Company has operating and finance leases for various real estate (including the Macao and Singapore leasehold interests in land) and equipment. Certain of these lease agreements include rental payments based on a percentage of sales over specified contractual amounts, rental payments adjusted periodically for inflation and rental payments based on usage. The Company’s leases include options to extend the lease term by one month to 40 years.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases recorded on the balance sheet consist of the following (excluding the Macao and Singapore leasehold interests in land assets; see "Note 5 — Leasehold Interests in Land, Net"):

		December 31,
Leases	Classification on the Balance Sheet	2020		2019
		(In millions)
Assets
Operating lease ROU assets	Other assets, net	$	178	$	190
Finance lease ROU assets	Property and equipment, net(1)	$	18	$	17
Liabilities
Current
Operating	Other accrued liabilities	$	29	$	28
Finance	Current maturities of long-term debt	$	13	$	8
Noncurrent
Operating	Other long-term liabilities	$	294	$	305
Finance	Long-term debt	$	12	$	9

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(1)Finance lease ROU assets are recorded net of accumulated depreciation of $13 million and $6 million as of December 31, 2020 and 2019, respectively.

Other information related to lease term and discount rate is as follows:

	December 31,
	2020		2019
Weighted Average Remaining Lease Term
Operating leases	31.4 years		31.6 years
Finance leases	2.3 years		2.3 years
Weighted Average Discount Rate
Operating leases(1)	4.6	%	4.6	%
Finance leases	3.0	%	3.8	%

____________________

(1)Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.

The components of lease expense are as follows:

	December 31,
	2020		2019
	(In millions)
Operating lease cost:
Amortization of leasehold interests in land	$	55	$	51
Operating lease cost	30		34
Short-term lease cost	10		19
Variable lease cost(1)	(1)		5
Finance lease cost:
Amortization of ROU assets	9		5
Interest on lease liabilities	1		1
Total lease cost	$	104	$	115

____________________

(1)Lease concessions were received for the year ended December 31, 2020, as a result of the COVID-19 Pandemic.

As of December 31, 2020, the Company has short-term lease commitments of $44 million. Expenses incurred under operating lease agreements, including amortization of leasehold interest in land and those that are short-term and variable in nature, totaled $94 million for the year ended December 31, 2018.

Supplemental cash flow information related to leases is as follows:

	December 31,
	2020		2019
	(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	35	$	40
Operating cash flows for finance leases	$	—	$	1
Financing cash flows for finance leases	$	3	$	5
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	10	$	14
Finance leases	$	24	$	17

Maturities of lease liabilities are summarized as follows:

	Operating Leases		Finance Leases
	(In millions)
Year ending December 31,
2021	$	36	$	14
2022	30		8
2023	24		3
2024	24		1
2025	22		—
Thereafter	514		—
Total future minimum lease payments	650		26
Less — amount representing interest	(327)		(1)
Present value of future minimum lease payments	323		25
Less — current lease obligations	(29)		(13)
Long-term lease obligations	$	294	$	12

Lessor

The Company leases space at several of its Integrated Resorts to various third parties as part of its mall operations that are recorded within mall revenues, as well as restaurant and retail space and land that are recorded within convention, retail and other revenues. These leases are non-cancelable operating leases with remaining lease periods that vary from one month to 50 years. The leases include minimum base rents with escalated contingent rent clauses.

Lease revenue consists of the following:

	Year Ended December 31,
	2020				2019
	Mall		Other		Mall		Other
	(In millions)
Minimum rents	$	523	$	8	$	518	$	15
Overage rents	39		1		98		2
Rent concessions(1)	(272)		(2)		—		—
Total overage rents and rent concessions	(233)		(1)		98		2
	$	290	$	7	$	616	$	17

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(1)Rent concessions were provided for the periods presented to tenants as a result of the COVID-19 Pandemic and the impact on mall and other operations.

Overage rents amounted to $88 million for the year ended December 31, 2018.

Future minimum rentals (excluding the escalated contingent rent clauses) on non-cancelable leases are as follows:

	Mall		Other
	(In millions)
Year ending December 31,
2021	$	466	$	9
2022	361		6
2023	277		5
2024	213		3
2025	160		2
Thereafter	463		3
Total minimum future rentals	$	1,940	$	28

The cost and accumulated depreciation of property and equipment the Company is leasing to third parties is as follows:

	December 31,
	2020		2019
	(In millions)
Property and equipment, at cost	$	1,405	$	1,320
Accumulated depreciation	(578)		(532)
Property and equipment, net	$	827	$	788