LEASES

6 Months Ended

Jun. 30, 2020

NOTE 14. LEASES

The components of lease expense were as follows (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Finance lease:
Amortization of assets, included in Depreciation and amortization expense	$	2	$	2	$	4	$	4
Interest on lease liabilities, included in Interest expense	1		1		2		2
Operating lease:
Amortization of assets, included in Total operating expense	2		2		4		4
Interest on lease liabilities, included in Total operating expense	—		—		1		1
Total net lease cost	$	5	$	5	$	11	$	11

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):



	June 30, 2020			December 31, 2019
Operating leases:
Operating lease ROU assets, included in Other assets	$	46		$	46

Current operating lease liabilities, included in Accrued expenses and other current liabilities	$	6		$	6
Noncurrent operating lease liabilities, included in Other liabilities	46			46
Total operating lease liabilities	$	52		$	52

Finance leases:
Property and equipment, at cost	$	170		$	168
Accumulated amortization	(29		)	(25		)
Property and equipment, net	$	141		$	143

Current obligations of finance leases, included in Current portion of long-term debt	$	7		$	6
Finance leases, net of current obligations, included in Long-term debt	81			84
Total finance lease liabilities	$	88		$	90

Supplemental cash flow and other information related to leases was as follows (in millions):



	Six Months Ended June 30,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(4	)	$	(5	)
Financing cash flows related to finance leases	$	(3	)	$	(3	)

Weighted average remaining lease term (in years):
Operating leases	11.4			12.8
Finance leases	31.5			33.7

Weighted average discount rate:
Operating leases	4.59		%	4.66		%
Finance leases	5.06		%	5.06		%

Maturities of lease liabilities were as follows (in millions):



	June 30, 2020
	Operating Leases			Finance Leases
Remainder of 2020	$	5		$	5
2021	9			12
2022	8			12
2023	7			12
2024	6			11
2025 and thereafter	33			105
Total lease payments	68			157
Less: Amounts representing interest	(16		)	(69		)
Total lease obligations	$	52		$	88

As of June 30, 2020, we had no additional significant operating or finance leases that had not yet commenced.

The components of lease expense were as follows (in millions):



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Finance lease:
Amortization of assets, included in Depreciation and amortization expense	$	2	$	2	$	4	$	4
Interest on lease liabilities, included in Interest expense	1		1		2		2
Operating lease:
Amortization of assets, included in Total operating expense	2		2		4		4
Interest on lease liabilities, included in Total operating expense	—		—		1		1
Total net lease cost	$	5	$	5	$	11	$	11

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):



	June 30, 2020			December 31, 2019
Operating leases:
Operating lease ROU assets, included in Other assets	$	46		$	46

Current operating lease liabilities, included in Accrued expenses and other current liabilities	$	6		$	6
Noncurrent operating lease liabilities, included in Other liabilities	46			46
Total operating lease liabilities	$	52		$	52

Finance leases:
Property and equipment, at cost	$	170		$	168
Accumulated amortization	(29		)	(25		)
Property and equipment, net	$	141		$	143

Current obligations of finance leases, included in Current portion of long-term debt	$	7		$	6
Finance leases, net of current obligations, included in Long-term debt	81			84
Total finance lease liabilities	$	88		$	90

Supplemental cash flow and other information related to leases was as follows (in millions):



	Six Months Ended June 30,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows related to operating leases	$	(4	)	$	(5	)
Financing cash flows related to finance leases	$	(3	)	$	(3	)

Weighted average remaining lease term (in years):
Operating leases	11.4			12.8
Finance leases	31.5			33.7

Weighted average discount rate:
Operating leases	4.59		%	4.66		%
Finance leases	5.06		%	5.06		%

Maturities of lease liabilities were as follows (in millions):



	June 30, 2020
	Operating Leases			Finance Leases
Remainder of 2020	$	5		$	5
2021	9			12
2022	8			12
2023	7			12
2024	6			11
2025 and thereafter	33			105
Total lease payments	68			157
Less: Amounts representing interest	(16		)	(69		)
Total lease obligations	$	52		$	88

As of June 30, 2020, we had no additional significant operating or finance leases that had not yet commenced.