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Leases (Tables)

9 Months Ended

Sep. 30, 2019

ROU assets and lease liabilities are as follows:



(millions)	Balance Sheet Location	September 30, 2019
ROU Assets
Operating Leases ⁽¹⁾	Other Noncurrent Assets	$	275
Finance Leases ⁽²⁾	Total Property, Plant and Equipment, Net	172
Total ROU Assets		$	447
Lease Liabilities
Current Liabilities
Operating Leases	Other Current Liabilities	$	97
Finance Leases	Other Current Liabilities	42
Noncurrent Liabilities
Operating Leases	Other Noncurrent Liabilities	209
Finance Leases	Long-Term Debt	164
Total Lease Liabilities		$	512


⁽¹⁾	Operating lease ROU assets primarily include office space of $117 million, compressors of $93 million, and drilling rigs of $29 million.

⁽²⁾

Finance lease ROU assets primarily include office space of $92 million and a trunkline of $32 million, both net of accumulated amortization.

Other information related to our leases as of September 30, 2019 is as follows:



	Operating Leases		Finance Leases
Weighted-Average Remaining Lease Term	5.7 years		7.7 years
Weighted-Average Discount Rate	4.40	%	5.02	%

Lease Expense

The components of lease cost are as follows:



(millions)	Statement of Operations Location	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating Lease Cost	⁽¹⁾	$	30		$	81
Finance Lease Cost
Amortization Expense	Depreciation, Depletion and Amortization	10			27
Interest Expense	Interest, Net of Amount Capitalized	3			10
Short-term Lease Cost ⁽²⁾	⁽¹⁾	88			357
Sublease Income	General and Administrative	(1		)	(3		)
Total Lease Cost		$	130		$	472


⁽¹⁾	Cost classifications vary depending on the leased asset. Costs are primarily included within production expense and general and administrative expense. In addition, in accordance with the successful efforts method of accounting, certain lease costs may be capitalized when incurred and, therefore, are included as part of oil and gas properties on our consolidated balance sheets.

⁽²⁾

Short-term lease costs relate primarily to hydraulic fracturing services, well-to-well drilling rig contracts and other miscellaneous lease agreements. Amount excludes costs for leases with an initial term of one month or less.

Supplemental Cash Flow Information

Supplemental cash flow information is as follows:



	Nine Months Ended September 30, 2019
(millions)	Operating Leases		Finance Leases
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows	$	50	$	9
Investing Cash Flows	27		—
Financing Cash Flows	—		31
Non-Cash Activities
ROU Assets Obtained in Exchange for Lease Liabilities ⁽¹⁾	93		15

⁽¹⁾

Amounts exclude the impact of adopting ASC 842 on January 1, 2019. See Note 2. Basis of Presentation.

Operating Lease Liability Maturity

Maturities of lease liabilities as of September 30, 2019 are as follows:



(millions)	Operating Leases		Finance Leases		Total
Remainder of 2019	$	28	$	13	$	41
2020	100		49		149
2021	61		35		96
2022	44		25		69
2023	29		22		51
2024 and Thereafter	85		106		191
Total Lease Liabilities, Undiscounted	347		250		597
Less: Imputed Interest	41		44		85
Total Lease Liabilities ⁽¹⁾	$	306	$	206	$	512

⁽¹⁾

Includes the current portions of $97 million and $42 million for operating and finance leases, respectively.

Finance Lease Liability Maturity

Maturities of lease liabilities as of September 30, 2019 are as follows:



(millions)	Operating Leases		Finance Leases		Total
Remainder of 2019	$	28	$	13	$	41
2020	100		49		149
2021	61		35		96
2022	44		25		69
2023	29		22		51
2024 and Thereafter	85		106		191
Total Lease Liabilities, Undiscounted	347		250		597
Less: Imputed Interest	41		44		85
Total Lease Liabilities ⁽¹⁾	$	306	$	206	$	512

⁽¹⁾

Includes the current portions of $97 million and $42 million for operating and finance leases, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases

Lease commitments as of December 31, 2018 were as follows:



(millions)	Operating Leases		Finance Leases		Total
2019	$	91	$	52	$	143
2020	74		46		120
2021	59		31		90
2022	62		22		84
2023	50		20		70
2024 and Thereafter	176		104		280
Total Lease Liabilities, Undiscounted	$	512	$	275	$	787

Schedule of Future Minimum Lease Payments for Finance Leases

Lease commitments as of December 31, 2018 were as follows:



(millions)	Operating Leases		Finance Leases		Total
2019	$	91	$	52	$	143
2020	74		46		120
2021	59		31		90
2022	62		22		84
2023	50		20		70
2024 and Thereafter	176		104		280
Total Lease Liabilities, Undiscounted	$	512	$	275	$	787