Leases Leases

12 Months Ended

Dec. 31, 2019

20. LEASES

The Hartford has operating leases for real estate and equipment. The right-of-use asset as of December 31, 2019 was $191 and is included in property and equipment, net, in the Consolidated Balance Sheet. The lease liability as of December 31, 2019 was $201 and is included in other liabilities in the Consolidated Balance Sheet. Variable lease costs include changes in interest rates on variable rate leases primarily for automobiles.

Components of Lease Expense



	Year Ended December 31,
	2019
Operating lease cost	$	49
Short-term lease cost	2
Variable lease cost	1
Sublease income	(5		)
Total lease costs included in insurance operating costs and other expenses	$	47

The total rental expense recognized in accordance with prior lease guidance was $56 and $57 in 2018 and 2017, respectively, which excludes sublease rental income of $4 and $3 in 2018 and 2017, respectively.

Supplemental Operating Lease Information



	December 31, 2019
Operating cash flows for operating leases (for the twelve months ended)	$	50
Right-of-use asset obtained in exchange for new operating lease liabilities	42
Weighted-average remaining lease term in years for operating leases	6 years
Weighted-average discount rate for operating leases	3.5		%

Maturities of Operating Lease Liabilities as of December 31, 2019



	Operating Leases
2020	$	51
2021	40
2022	34
2023	31
2024	21
Thereafter	46
Total lease payments	223
Less: Discount on lease payments to present value	22
Total lease liability	$	201

During 2019, The Hartford entered into 5, 10, and 12 year operating leases for office space, which will result in additional right-of-use asset and lease liabilities of approximately $54. These leases commence in the first half of 2020.

Future Minimum Lease Commitments as of December 31, 2018



	Operating Leases
2019	$	44
2020	36
2021	25
2022	18
2023	16
Thereafter	34
Total minimum lease payments [1]	$	173


[1]	Excludes expected future minimum sublease income of approximately $2, $1, $1 , $0 , $0 and $0 in 2019, 2020, 2021, 2022, 2023 and thereafter respectively.

The Company’s lease commitments consist primarily of lease agreements for office space, automobiles, and office equipment that expire at various dates.