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Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
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:

(In millions)

As of December 31, 2019

Weighted-average remaining lease term (years):

Operating leases

10

Weighted-average discount rate:

Operating leases

6.1

%

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:

Twelve Months Ended

(In millions)

December 31, 2019

Cash paid for amounts included in the measurement of lease liabilities

$

4

Leased assets obtained in exchange for new lease liabilities

1

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:

(In millions)

As of December 31, 2019

Operating lease right-of-use assets

$

23

Less lease incentives

(6)

Operating lease right-of-use assets, net

$

17

Other accrued liabilities

$

3

Operating lease liabilities

20

Total operating lease liabilities

$

23

The following table presents maturities of our operating lease liabilities as of December 31, 2019.

Operating

(In millions)

Leases

2020

$

4

2021

4

2022

4

2023

3

2024

2

Thereafter

13

Total lease payments

31

Less imputed interest

(8)

Total

$

23