Leases (Tables)

9 Months Ended

Sep. 30, 2020

Additional information regarding real estate operating leases

Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Company’s real estate operating leases is as follows:


	Three Months Ended September 30,									Nine Months Ended September 30,
(in millions)	2020			2019			2020			2019

Lease cost
Operating leases	$	23		$	23		$	71		$	68
Short-term leases ⁽¹⁾	1			2			2			9

Lease expense	24			25			73			77
Less: sublease income ⁽²⁾	—			—			—			—
Net lease cost	$	24		$	25		$	73		$	77

Other information on operating leases

Cash payments to settle a lease liability reported in cash flows	$	27		$	27		$	82		$	77
Right-of-use assets obtained in exchange for new lease liabilities	$	8		$	14		$	26		$	50
Weighted average discount rate	2.86		%	3.04		%	2.86		%	3.04		%
Weighted average remaining lease term	4.9 years			5.2 years			4.9 years			5.2 years

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(1) Leases with an initial term of twelve months or less are not recorded on the balance sheet.

(2) Sublease income consists of rent from third parties of office space and is recognized as part of other revenues in the consolidated statement of income.

Contractual maturities of lease liabilities

The following table presents the contractual maturities of the Company's lease liabilities:


(in millions)	Real Estate Lease Liability

Remainder of 2020	$	27
2021	100
2022	76
2023	56
2024	40
Thereafter	63
Total undiscounted lease payments	362
Less: present value adjustment	25
Operating lease liability	$	337