Leases

6 Months Ended

Jun. 30, 2019

Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; (2) data centers and server equipment; and (3) live event production equipment. Our existing leases have remaining lease terms ranging from one to 10 years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one to five years for each option. The exercise of lease renewal options is generally at our sole discretion. Additionally, the majority of our leases are classified as operating leases; our financing leases are not material.

Components of our lease costs are as follows (amounts in millions):



	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating leases
Operating lease costs	$	20	$	40
Variable lease costs	4		9

Other supplemental information related to our operating leases is as follows (amounts in millions):



	Six Months Ended June 30, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	43
ROU assets obtained in exchange for new lease obligations	47

	At June 30, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	5.34 years
Discount rate	4.12		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at June 30, 2019, are as follows (amounts in millions):



For the years ending December 31,
2019 (remaining six months)	$	35
2020	69
2021	55
2022	48
2023	42
Thereafter	75
Total future lease payments	$	324
Less imputed interest	(35		)
Total lease liabilities	$	289

Operating lease ROU assets and liabilities recorded on our condensed consolidated balance sheet as of June 30, 2019, were as follows (amounts in millions):



	At June 30, 2019		Balance Sheet Classification
ROU assets	$	254	Other assets

Current lease liabilities	$	60	Accrued expenses and other current liabilities
Non-current lease liabilities	229		Other liabilities
	$	289	Total lease liabilities

Future minimum lease payments as of December 31, 2018, prior to our adoption of the new lease accounting standard, were as follows:



For the years ending December 31,
2019	$	80
2020	70
2021	53
2022	45
2023	38
Thereafter	60
Total	$	346