7. Leases

The Company is obligated under operating leases for almost all of its store properties. In addition, the Company leases certain warehouse distribution centers. Operating lease periods generally range from 5 to 10 years and most store leases contain rent escalation provisions. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning in 2019 and later, the Company will combine lease components (e.g. rental payments) and non-lease components (e.g. common area maintenance costs and utilities).

Right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term for those arrangements where there is an identified asset and the contract conveys the right to control its use.

7. Leases – (continued)

Since the rates implicit in the leases are not readily determinable, the Company uses its incremental borrowing rates based on the remaining lease term to determine the present value of future lease payments. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms.

Some of the store leases contain renewal options with varying terms and conditions. The Company’s lease term includes options to extend or terminate a lease only when it is reasonably certain that it will exercise that option.

Certain leases provide for variable lease costs, which primarily include rent payments based on a percentage of store sales, common area maintenance costs and taxes.

The components of lease cost as of May 4, 2019 were as follows:


	($ in millions)
Operating lease costs	$	166
Variable lease costs		84
Short-term lease costs		7
Net lease cost	$	257

Rent expense for operating leases for the thirteen weeks ended May 5, 2018 amounted to $185 million and consisted of minimum and contingent rentals of $179 million and $7 million, respectively, less sublease income of $1 million.

Amounts recognized in the Condensed Consolidated Balance Sheet related to operating leases as of May 4, 2019 were as follows:


	($ in millions)
Assets
Operating lease right-of-use assets	$	3,025

Liabilities
Current
Operating lease liabilities		499
Noncurrent
Operating lease liabilities		2,804
Total lease liabilities	$	3,303

Other information related to operating leases as of May 4, 2019 consisted of the following:




Weighted average remaining lease term (years)	7.4
Weighted average discount rate	5.5	%

7. Leases – (continued)

Supplemental cash flow information related to leases as of May 4, 2019 was as follows:


	($ in millions)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	168
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		29

Maturities of lease liabilities as of May 4, 2019 are as follows:


	($ in millions)
Remainder of 2019	$	503
2020		628
2021		581
2022		526
2023		455
Thereafter		1,374
Total lease payments		4,067
Less: Interest		764
Total lease liabilities	$	3,303

As of February 2, 2019, the estimated future minimum non-cancellable lease commitments were as follows:


	($ in millions)
2019	$	672
2020		631
2021		583
2022		527
2023		456
Thereafter		1,408
Total operating lease commitments	$	4,277