NOTE 15 - LEASES

As a lessee, the Corporation has entered into operating leases for the majority of its real estate locations, primarily retail and office space. The Corporation recognized total lease expense of $19 million, including $15 million of operating lease expense and $4 million of variable lease expense, for the three months ended March 31, 2019.

At March 31, 2019, the Corporation's ROU assets and operating lease liabilities were $318 million and $355 million, respectively. The weighted average lease term for the lease liabilities was 9 years, and the weighted average discount rate of remaining payments was 3.93 percent. Lease liabilities from new ROU assets obtained during the three months ended March 31, 2019 totaled $4 million. Cash paid on operating lease liabilities was $16 million for the three months ended March 31, 2019.

As of March 31, 2019, the contractual maturities of operating lease liabilities were as follows:



(in millions)
Years Ending December 31
2019 (a)	$	43
2020	63
2021	55
2022	46
2023	39
Thereafter	182
Total contractual maturities	428
Less imputed interest	(73		)
Total operating lease liabilities	$	355

(a) Contractual maturities for the nine months remaining in 2019.

As a lessor, the Corporation leases certain types of manufacturing and warehouse equipment as well as public and private transportation vehicles to its customers. The Corporation recognized $3 million of lease-related revenue, primarily interest income from sales-type and direct financing leases, for the three months ended March 31, 2019. At March 31, 2019, the Corporation's net investment in sales-type and direct financing leases was $320 million.

As of March 31, 2019, the contractual maturities of sales-type and direct financing lease receivables were as follows:



(in millions)
Years Ending December 31
2019 (a)	$	65
2020	66
2021	54
2022	48
2023	42
Thereafter	68
Total lease payments receivable	343
Less deferred interest income	(23		)
Total lease receivables (b)	$	320

(a) Contractual maturities for the nine months remaining in 2019.

(b) Includes unguaranteed residual values of $60 million and excludes net investment in leveraged leases of $215 million.