Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Changes in the Allowance for Doubtful Accounts

The following table presents the changes in our allowance for doubtful accounts for the periods presented:

	December 31,
	2019			2018			2017
	(in millions)
Allowance for doubtful accounts:
Balance, beginning of period	$	21		$	16		$	9
Charges to earnings		11			11			8
Write-offs, net of recoveries and other    adjustments		(7	)		(6	)		(1	)
Balance, end of period	$	25		$	21		$	16

Components of Lease Expense

	Year ended December 31, 2019
	(in millions)
Operating lease cost (1)	$	24
Finance lease cost
Amortization of right-of-use assets (2)	$	9
Interest on lease liabilities (3)		4
Total finance lease cost	$	13
Sublease income (1)		(3	)
Total lease cost, net	$	34

(1) Operating lease costs, net of sublease income, are included within operating expenses in our consolidated statement of operations. During both the years ended December 31, 2018 and 2017, we recorded operating lease expense of $21 million and sublease income of $3 million, in our consolidated statement of operations in accordance with ASC 840.  

(2) Amount is included in depreciation expense in our consolidated statement of operations. During both the years ended December 31, 2018 and 2017, we recorded depreciation expense of $3 million related to our Headquarters Lease in our consolidated statement of operations in accordance with ASC 840.

(3) Amount is included in interest expense in our consolidated statement of operations. During both the years ended December 31, 2018 and 2017, we recorded interest expense of $7 million related to our Headquarters Lease in our consolidated statement of operations in accordance with ASC 840.

Additional Information Related to Leases

Additional information related to our leases is as follows for the periods presented:  

	Year ended December 31, 2019
Supplemental Cash Flows Information:	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	26
Operating cash outflows from finance lease		4
Financing cash outflows from finance lease		5
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases (1)	$	106
Finance lease (2)		88

(1) Amount includes operating leases existing on January 1, 2019 of $88 million and those that commenced during the year ended December 31, 2019 of $18 million.

(2) Amount represents the finance lease liability arising from obtaining the ROU asset related to our Headquarters Lease, which was recognized upon the adoption of ASC 842 on January 1, 2019.

	As of December 31, 2019
Weighted-average remaining lease term:
Operating leases	4.4 years
Finance lease	11.0 years
Weighted-average discount rate:
Operating leases		4.11	%
Finance lease		4.49	%

Summary of Future Lease Payments Under Non-Cancellable Leases

Future lease payments under non-cancelable leases as of December 31, 2019 were as follows:

Year Ending December 31,	Operating Leases			Finance Lease
	(in millions)
2020	$	23		$	9
2021		23			10
2022		19			10
2023		13			10
2024		8			10
Thereafter		6			57
Total future lease payments		92			106
Less imputed interest		(8	)		(23	)
Total lease liabilities	$	84		$	83
Reported on consolidated balance sheet as of December 31, 2019	Operating Leases			Finance Lease
	(in millions)
Accrued expenses and other current liabilities	$	20		$	5
Other long-term liabilities		64			78
Total lease liabilities	$	84		$	83

Future Minimum Commitments Under Our Corporate Headquarters Lease and Other Non-Cancelable Operating Leases

As of December 31, 2018, future minimum lease commitments under our Headquarters Lease and other non-cancelable operating leases for office space with terms of more than one year and contractual sublease income were as follows:

Year	Headquarters Lease (1)		Other Operating Leases		Sublease Income			Total Lease Commitments (Net of Sublease Income)
	(in millions)
2019		9	$	19	$	(3	)	$	25
2020		9		18		(2	)		25
2021		10		16		(2	)		24
2022		10		16		(2	)		24
2023		10		9		—			19
Thereafter		67		9		—			76
Total	$	115	$	87	$	(9	)	$	193

(1) Amount includes an $83 million financing obligation in other long-term liabilities on our consolidated balance sheet at December 31, 2018, related to the Headquarters Lease.

Accounting Standards Update 2016-02

Adoption of ASC 842 on Unaudited Condensed Consolidated Balance Sheet

The effect on our consolidated balance sheet as of January 1, 2019 from the adoption of ASC 842 is as follows:

	Balance at December 31, 2018		Adjustments due to ASC 842			Balance at January 1, 2019
	(in millions)
Assets:
Prepaid expenses and other current assets	$	33	$	(3	)	$	30
Property and equipment, net (1)		253		8			261
Operating lease right-of-use assets (1)		—		75			75
Deferred income taxes, net		27		(1	)		26
Other long-term assets		86		(2	)		84
Liabilities:
Accrued expenses and other current liabilities (2)		151		21			172
Other long-term liabilities (1)		282		53			335
Retained earnings (3)	$	1,043	$	3		$	1,046

(1) Refer to the below discussion regarding the transition accounting for operating and finance leases upon adoption of ASC 842.

(2) This adjustment primarily represents the short-term portion of operating and finance lease obligations recorded upon adoption of ASC 842, discussed below.

(3) Represents a cumulative-effect adjustment of $3 million, net of tax to our beginning balance of retained earnings recorded upon adoption of ASC 842.