Leases

We have entered into operating leases for premises and equipment. As discussed more fully in Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," beginning January 1, 2019, lease ROU assets and lease liabilities for operating leases are recognized at effective commencement date based on the present value of lease payments over the lease term.

The following table summarizes the components of total operating lease costs, net and provides supplemental cash flow information related to leases:



	Year Ended December 31, 2019
	(in millions)
Operating lease cost	$	136
Variable lease cost	63
Short-term lease cost	4
Sublease income⁽¹⁾	(60		)
Total operating lease costs, net	$	143

Supplemental disclosure of cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	126
ROU assets recognized for new operating lease liabilities	132


⁽¹⁾	We have entered into agreements to sublease certain office space, including agreements to receive rental income from our affiliates for rent. As owner or lessee of the properties, we have entered into agreements with these affiliates to charge them rent based on the office space utilized by their employees during the period. See Note 23, "Related Party Transactions," for further disclosure.

In addition to the operating lease costs reflected in the table above, during the fourth quarter of 2019, we began a review of the scope of our retail branch network and determined that we would exit approximately 20 branches. As a result, we recorded impairment charges of $13 million in the fourth quarter of 2019 to write down the lease ROU assets associated with these branches based on their estimated remaining useful lives. These impairment charges are reflected in occupancy expense, net in the consolidated statement of income (loss) and were reported in our Corporate Center business segment for segment reporting purposes.

The following table presents information about our operating lease ROU assets and liabilities:



	December 31, 2019
	(dollars are in millions)
Operating lease ROU assets⁽¹⁾	$	719
Operating lease liabilities	783
Weighted-average remaining lease term	7.2 years
Weighted-average discount rate	3.1		%


⁽¹⁾	Reported net of level lease adjustments, exit cost obligations and accumulated impairment losses.

The following table presents a maturity analysis of our operating lease liabilities at December 31, 2019:



Year Ending December 31,
	(in millions)
2020	$	133
2021	138
2022	135
2023	130
2024	124
Thereafter	228
Total future operating lease payments	888
Less - imputed interest	(105		)
Total operating lease liabilities	$	783

At December 31, 2019, we had $15 million of additional operating leases for premises that have not yet commenced and are not reflected in the table above.

For comparative periods prior to the adoption of the new accounting guidance on January 1, 2019, we have retained the following disclosures as previously reported. Net rental expense under operating leases, which did not include certain variable lease costs, was $103 million and $94 million in 2018 and 2017, respectively.

Future net minimum lease commitments under noncancellable operating lease arrangements at December 31, 2018, which did not include renewals, were as follows:



Year Ending December 31,	Minimum Lease Payments		Minimum Sublease Income			Net
	(in millions)
2019	$	136	$	(58	)	$	78
2020	125		(2		)	123
2021	115		(1		)	114
2022	103		—			103
2023	91		—			91
Thereafter	182		(1		)	181
Net minimum lease commitments	$	752	$	(62	)	$	690