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Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases 4. Leases

We have operating and finance leases for real estate, vehicles, and equipment.

We incurred lease expense in the amount of $38 million and $80 million for the three and six months ended June 30, 2019. Operating and Financing lease costs were $34 million and $4 million, and $71 million and $9 million, respectively, for the three and six months ended June 30, 2019. Short-term rental expense, for agreements less than one year in duration, is immaterial. For the three and six months ended June 30, 2019, financing lease cost was comprised of expenses for depreciation of right-of-use assets and Interest on lease liabilities in the amounts of $2 million and $4 million, and $2 million and $5 million, respectively.

Cash paid for amounts included in the measurement of lease liabilities totaled $26 million and $55 million for the three and six months ended June 30, 2019. Operating cash outflows from operating and financing leases were $22 million and $48 million, and $2 million and $5 million, respectively. Financing cash outflows from finance leases were nominal.


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

June 30,

2019

Operating Leases

Operating lease right-of-use assets, net (1)

$

508

Other current liabilities

$

61

Operating lease liabilities (2)

452

Total operating lease liabilities

$

513

Finance Leases

Property and equipment, at cost

$

186

Accumulated depreciation

(51)

Property and equipment, net

$

135

Current portion of long-term debt

$

7

Long-term debt

190

Total finance lease liabilities

$

197

(1)Included in other assets.

(2)Included in other liabilities.

The weighted average remaining lease terms for operating and financing leases are 12.6 years and 6.0 years, respectively. The weighted average discount rates for operating and financing leases are 3.9% and 5.9%, respectively.

As of June 30, 2019, maturities of lease liabilities under the new lease standard are as follows (in millions):

2019

2020

2021

2022

2023

After 2023

Gross Total

Imputed Discount

Total

Operating Leases

$

55

$

92

$

76

$

65

$

57

$

391

$

736

$

(223)

$

513

Financing Leases

9

16

16

17

134

53

245

(48)

197

As of December 31, 2018, maturities of lease liabilities under the previous lease standard were as follows (in millions):

Total

Less than
1 year

1 to 3
years

3 to 5
years

5 years and
thereafter

Capital leases and financing
  obligations 

$

393

$

4

$

11

$

132

$

246

Imputed interest on capital leases and
  financing obligations

205

20

38

37

110

Minimum rental commitments 

581

82

133

111

255

As of June 30, 2019, we have additional operating leases, primarily for new production facilities and equipment, that have not yet commenced of approximately $450 million on an undiscounted basis. These operating leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of 10 years to 25 years.