Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

14.  Leases

The Company has operating and finance leases for corporate and field offices. We determine if an arrangement is a lease at inception or modification. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and corresponding lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Certain lease incentives such as free rent periods are recorded as a reduction of the ROU asset. The Company uses an incremental borrowing rate that is readily available in determining the present value of future lease payments. Lease expense for operating ROU assets is recognized on a straight-line basis over the lease term.

Certain leases include one or more options to renew with terms that can extend the lease from one year to twenty years. The exercise of any lease renewal option is at the sole discretion of the Company. Renewal options are included in the ROU assets and lease liabilities when they either provide an economic incentive to renew or when the costs related to the termination of a lease outweigh the benefits of signing a new lease. See Note 2 for further discussion on the Company's accounting policy on leases.

The following table presents the balances for operating and finance ROU assets and lease liabilities:

Leases	Classification	March 31, 2019
		(in millions)
Assets
Operating lease assets	Other assets	$	225
Finance lease assets	Other assets	46
Total lease assets		$	271
Liabilities
Operating lease liabilities	Other liabilities	$	248
Finance lease liabilities	Long-term debt	55
Total lease liabilities		$	303

The components of lease expense include operating and finance lease costs. Operating lease costs were $15 million for the three months ended March 31, 2019. Finance lease costs were $2 million for the three month ended March 31, 2019 and consisted of $2 million in amortization. The amount of interest expense on finance leases is immaterial. These costs are recorded in general and administrative expenses in the Consolidated Statements of Operations.

Maturities of lease liabilities, weighted-average remaining term and weighted-average discount rate are as follows:

Maturity of Lease Liabilities	March 31, 2019
	Finance Leases			Operating Leases
	(in millions)
2019	$	11		$	42
2020	14			56
2021	7			42
2022	7			35
2023	7			27
Thereafter	14			73
Total lease payments	60			275
Less: Interest	(5		)	(27		)
Present value of lease liabilities	$	55		$	248
Weighted-average remaining lease term (years)	6.6			6.4
Weighted-average discount rate	3.4		%	3.2		%

Maturities of lease liabilities prior to the adoption of new lease guidance were as follows:

Maturity of Lease Liabilities	December 31, 2018
	Operating Leases
	(in millions)
2019	$	61
2020	53
2021	40
2022	33
2023	26
Thereafter	65
Total lease payments	$	278

For the three months ended March 31, 2019, operating cash flows included $15 million of cash paid for amounts included in the measurement of operating lease liabilities. For the three months ended March 31, 2019, financing cash flows included $3 million of cash paid for amounts included in the measurement of finance lease liabilities.