LEASES

Our leasing activities predominantly consist of leasing office space that we occupy, which we have classified as operating leases. Our leases are comprised of fixed payments with remaining lease terms of 1 year to 9.5 years, some of which include options to extend for up to 15 years. As of March 31, 2019, we have not included any options to extend or cancel in the calculation of our lease liability or ROU asset. We do not have any significant residual value guarantees or restrictive covenants in our leases.

During the three months ended March 31, 2019, we recognized operating lease expense of $5 million.

During the three months ended March 31, 2019, we paid $5 million to reduce operating lease liabilities and recognized $12 million in new operating lease liabilities in exchange for ROU assets.

As of March 31, 2019, the weighted average remaining lease term on our operating leases was 6.4 years. Future minimum lease payments as of March 31, 2019 and December 31, 2018 were the following:



(in millions)	March 31, 2019⁽²⁾			December 31, 2018 ⁽³⁾
2019⁽¹⁾	$	15		$	18
2020	17			17
2021	10			11
2022	8			9
2023	8			8
2024	5			5
2025 and thereafter	19			20
Total future minimum lease payments	$	82		$	88
Less: imputed interest	(12		)	N/A⁽⁴⁾
Total operating lease liabilities	70			N/A⁽⁴⁾
Current portion	16			N/A⁽⁴⁾
Non-current portion	54			N/A⁽⁴⁾

(1) The remaining payments as of March 31, 2019 exclude those made during the three months ended March 31, 2019.


(2)	Presented in accordance with ASC 842, which excludes base payments of $3 million for leases that do not yet have a commencement date.

(3) Presented in accordance with ASC 840.

(4) N/A - Not Applicable under ASC 840.

As of March 31, 2019, we have entered into two leases that have not yet commenced for terms of up to 5 years. Those leases will require minimum lease payments over their terms of $3 million.