LEASE OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2019

The following tables summarize our leased assets and lease liability obligations:

		December 31, 2019		December 31, 2018
		(In millions)
Leases	Classification
Assets
Operating lease assets	Operating lease right-of-use assets	$	364	$	-
Finance lease assets	Property, plant and equipment, net		50		70
	Total leased assets		414		70
Liabilities
Current
Operating	Current portion of long-term lease obligations		98		-
Finance ⁽¹⁾	Finance lease obligation		47		8
			145		8
Noncurrent
Operating	Long-term lease obligations		304		-
Finance	Finance lease obligation		-		66
			304		66

	Total lease liabilities	$	449	$	74

⁽¹⁾	^{As a result of the debt compliance matters, we determined that the classification our finance lease obligations was current and, accordingly, we recorded those obligations within Current Liabilities on the Balance Sheet as of December 31, 2019.}

Our lease cost was as follows:

		Year ended
		December 31, 2019
Lease cost	Classification in the Statement of Operations	(In millions)
Operating lease cost ⁽¹⁾	SG&A expenses	$	52
Operating lease cost ⁽¹⁾	Cost of operations		89
Finance lease cost
Amortization of leased assets	Cost of operations		3
Interest on lease liabilities	Net interest expense		4
Net lease cost		$	148

⁽¹⁾	Includes short-term leases and immaterial variable lease costs.

Future minimum lease payments for our operating and finance lease obligations as of December 31, 2019 are as follows:

	Operating leases			Finance leases			Total
	(In millions)
2020	$	102		$	8		$	110
2021		89			8			97
2022		77			8			85
2023		61			8			69
2024		54			8			62
After 2024		287			24			311
Total lease payments		670			64			734
Less: Interest		(268	)		(17	)		(285	)
Present value of lease liabilities	$	402		$	47		$	449

Lease term and discount rates for our operating and finance lease obligations are as follows:

Lease Term and Discount Rate	December 31, 2019
Weighted-average remaining lease term (years)
Operating leases		7.5
Finance leases		8.1
Weighted-average discount rate
Operating leases		9.8	%
Finance leases		9.9	%

Supplemental information for our operating and finance lease obligations are as follows:

Other information	December 31, 2019
	(In millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(106	)
Financing cash flows from finance leases		(6	)
Leased assets obtained in exchange for new operating lease liabilities		364
Leased assets obtained in exchange for new finance lease liabilities		-