Leases |
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Leases | Note 5. Leases
We have operating leases primarily for corporate offices and call centers and finance leases for vehicles. Our leases have remaining lease terms of one year to 15 years, some of which include options to extend the leases for up to five years. Renewal options that are reasonably certain to be exercised are included in the lease term. An incremental borrowing rate is used in determining the present value of lease payments unless an implicit rate is readily determinable. Incremental borrowing rates are determined based on our secured borrowing rating and the lease term. Disclosures related to finance lease obligations are immaterial and, as such, are not included in the discussion below.
The weighted-average remaining lease term and weighted-average discount rate is as follows:
We recognized operating lease expense, including allocated corporate rent for periods prior to the Spin-off, of $4 million, $4 million and $5 million for the years ended years ended December 31, 2019, 2018 and 2017, respectively. These expenses are included in Selling and administrative expenses in the accompanying consolidated and combined statements of operations and comprehensive income.
Supplemental cash flow information related to operating leases is as follows:
As a result of our adoption of ASC 842, we recognized ROU assets and lease liabilities of approximately $24 million for operating leases as of January 1, 2019. These amounts are excluded from the accompanying consolidated and combined statements of cash flows as non-cash operating activities. Our accounting for finance leases remained unchanged.
Supplemental balance sheet information related to operating leases is as follows:
The following table presents maturities of our operating lease liabilities as of December 31, 2019.
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