Leases - (Notes)

6 Months Ended

Jun. 30, 2019

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 to 9.3 years, some of which include options to extend for up to 15 years. As of June 30, 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 second quarter of 2019, we recognized operating lease expense of $5 million and we recognized $10 million during the first half of 2019.

During the second quarter of 2019, we paid $4 million to reduce operating lease liabilities and $8 million during the first half of 2019. During the second quarter of 2019, we recognized $5 million in new operating lease liabilities in exchange for ROU assets and we recognized $17 million during the first half of 2019.

As of June 30, 2019, the weighted average remaining lease term on our operating leases was 6.2 years. Future minimum lease payments as of June 30, 2019 and December 31, 2018 were as follows:



(in millions)	June 30, 2019⁽²⁾			December 31, 2018 ⁽³⁾
2019⁽¹⁾	$	10		$	18
2020	18			17
2021	11			11
2022	10			9
2023	9			8
2024	6			5
2025 and thereafter	19			20
Total future minimum lease payments	$	83		$	88
Less: imputed interest	(11		)	N/A⁽⁴⁾
Total operating lease liabilities	72			N/A⁽⁴⁾
Current portion	17			N/A⁽⁴⁾
Non-current portion	55			N/A⁽⁴⁾

(1) The remaining payments as of June 30, 2019 exclude those made during the six months ended June 30, 2019.


(2)	Presented in accordance with ASC 842, which excludes base payments of $4 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 June 30, 2019, we have entered into two leases that have not commenced for terms up to 5 years. Those leases will require minimum lease payments over their terms of $4 million.