Leases (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Operating and Finance Lease Assets and Liabilities are Included on Consolidated Balance Sheet

Operating and finance lease assets and liabilities are included on our consolidated balance sheet as follows for the period presented:

		December 31,		December 31,
	Consolidated Balance Sheet Location	2020		2019
		(in millions)
Noncurrent Lease Assets:
Finance lease	Property and equipment, net	$	95	$	105
Operating lease	Operating lease right-of-use-assets		54		74
	Total noncurrent lease assets	$	149	$	179


Current Lease Liabilities:
Finance lease	Accrued expenses and other current liabilities	$	5	$	5
Operating lease	Accrued expenses and other current liabilities		21		20
	Total current lease liabilities		26		25

Noncurrent Lease Liabilities:
Finance lease	Finance lease obligation, net of current portion		71		78
Operating lease	Operating lease liabilities, net of current portion		46		64
	Total noncurrent lease liabilities		117		142

	Total lease liabilities	$	143	$	167

Components of Lease Expense

The components of lease expense were as follows for the periods presented:

	Year ended December 31,
	2020			2019
	(in millions)
Operating lease cost (1)	$	28		$	24
Finance lease cost:
Amortization of right-of-use assets (2)	$	10		$	9
Interest on lease liabilities (3)		4			4
Total finance lease cost	$	14		$	13
Sublease income on operating leases (1)		(3	)		(3	)
Total lease cost, net	$	39		$	34

(1)

Operating lease costs, net of sublease income, are included within operating expenses in our consolidated statements of operations.

(2)

Amount is included in depreciation expense in our consolidated statements of operations.

(3)

Amount is included in interest expense in our consolidated statements of operations.

Additional Information Related to Leases

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

	Year ended December 31,
	2020		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	$	26
Operating cash outflows from finance lease		4		4
Financing cash outflows from finance lease		6		5

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases (1)	$	4	$	106
Finance lease (2)		—		88

(1)

Amount related to 2019 includes operating leases, recognized upon adoption of ASC 842 on January 1, 2019 of $88 million, and those that commenced during the year ended December 31, 2019 of $18 million.

(2)

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

	Year ended December 31,
	2020			2019
Weighted-average remaining lease term:
Operating leases	3.7 years			4.4 years
Finance lease	10.0 years			11.0 years

Weighted-average discount rate:
Operating leases		3.99	%		4.11	%
Finance lease		4.49	%		4.49	%

Summary of Future Lease Payments Under Non-Cancellable Leases

Future lease payments under non-cancelable leases as of December 31, 2020 were as follows:

Year Ending December 31,	Operating Leases			Finance Lease
	(in millions)
2021	$	25		$	10
2022		21			10
2023		13			10
2024		8			10
2025		3			10
Thereafter		2			46
Total future lease payments		72			96
Less imputed interest		(5	)		(20	)
Total lease liabilities	$	67		$	76