Leases

On January 1, 2019, we adopted a new accounting standard that amends the guidance for the accounting and reporting of leases. Certain required disclosures have been made on a prospective basis in accordance with the guidance of the standard. See Note 1, Summary of significant accounting policies.

We lease certain facilities and equipment related primarily to administrative, R&D and sales and marketing activities. Leases with lease terms of 12 months or less are expensed on a straight-line basis over the lease term and are not recorded in the Condensed Consolidated Balance Sheets.

Most leases include one or more options to renew, with renewal terms that can extend the lease term up to seven years. The exercise of lease renewal options is at our sole discretion. In addition, some of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements neither contain any residual value guarantees nor impose any significant restrictions or covenants. We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases from former R&D and administrative space.

The following table summarizes information related to our leases, which are all classified as operating, included in our Condensed Consolidated Balance Sheets (in millions):



Condensed Consolidated Balance Sheets locations	March 31, 2019
Assets:
Other assets	$	417
Liabilities:
Accrued liabilities	$	120
Other noncurrent liabilities	368
Total lease liabilities	$	488

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



Lease costs	Three months ended March 31, 2019
Operating⁽¹⁾	$	48
Sublease income	(8		)
Total net lease costs	$	40

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⁽¹⁾	Includes short-term leases and variable lease costs, which were not material for the three months ended March 31, 2019.

Maturities of lease liabilities as of March 31, 2019, were as follows (in millions):



Maturity dates	Operating leases
Remaining nine months ending December 31, 2019	$	135
2020	133
2021	107
2022	63
2023	48
Thereafter	41
Total lease payments⁽¹⁾	527
Less imputed interest	(39		)
Present value of lease liabilities	$	488

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⁽¹⁾	Includes future rental commitments for abandoned leases of $204 million. We expect to receive total future rental income of $166 million related to noncancelable subleases for abandoned facilities.

The weighted-average remaining lease term and weighted-average discount rate of our leases were 4.5 years and 3.32%, respectively, as of March 31, 2019.

Cash and noncash information related to our leases was as follows (in millions):



	Three months ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	34
ROU assets obtained in exchange for lease obligations:
Operating leases	$	8