As a result of adoption of ASU No. 2016-02, Leases, management recorded a right-of-use asset and lease liability, each in the amount of $201, on Alcoa Corporation’s Consolidated Balance Sheet as of January 1, 2019 for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. These amounts are equivalent to the aggregate future lease payments on a discounted basis. The leases have remaining terms of one to 39 years. The discount rate applied to these leases is the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments, unless there is a rate implicit in the lease agreement. Lease expense for the three-months ended June 30, 2019, includes costs from operating leases of $20, short-term rental expense of $1 and variable lease payments of $5. Lease expense for the six-months ended June 30, 2019, includes costs from operating leases of $39, short-term rental expense of $4 and variable lease payments of $8. New leases of $7 were added during the three and six-months ended June 30, 2019. The Company does not have material financing leases.

The following represents the aggregate right-of use assets and related lease obligations as of June 30, 2019:

Amounts recognized in the Consolidated Balance Sheet at June 30, 2019:
Properties, plants and equipment, net	$	175
Other current liabilities		66
Other noncurrent liabilities and deferred credits		109
Total operating lease liabilities	$	175

The weighted average lease term and weighted average discount rate as of June 30, 2019 were as follows:

Weighted average lease term
Operating leases		4.1 years
Weighted average discount rate
Operating leases		5.3%

The future cash flows related to the operating lease obligations as of June 30, 2019 were as follows:

Year Ending December 31,	Operating leases
2019 (excluding the six months ended June 30)	$	41
2020		68
2021		51
2022		18
2023		10
Thereafter		22
Total lease payments (undiscounted)		210
Less: discount to net present value		(35	)
Total	$	175

Disclosures related to periods presented prior to the adoption of ASU No. 2016-02

The Company adopted ASU No. 2016-02, Leases, on January 1, 2019 using the modified retrospective approach which requires the following disclosure for periods presented prior to adoption. The following table represents minimum annual lease commitments as of December 31, 2018 under long-term operating leases:

Year Ending December 31,	Operating leases
2019	$	74
2020		56
2021		42
2022		11
2023		5
Thereafter		21
Total lease payments	$	209