Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Leases

We have operating leases which are primarily real estate leases for our U.S. and European headquarters and for general office space. The following table provides supplemental balance sheet information related to Nasdaq's operating leases:

Leases	Balance Sheet Classification	March 31, 2020		December 31, 2019
		(in millions)
Assets:
Operating lease assets	Operating lease assets	$	324	$	346
Liabilities:
Current lease liabilities	Other current liabilities	$	58	$	61
Non-current lease liabilities	Operating lease liabilities	310		331
Total lease liabilities		$	368	$	392

The following table summarizes Nasdaq's lease cost:

	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
	(in millions)
Operating lease cost(1)	$	20	$	20
Variable lease cost	6		5
Sublease income	(1)		(1)
Total lease cost	$	25	$	24

____________

⁽¹⁾ Includes short-term lease cost, which was immaterial.

The following table reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded in our condensed consolidated balance sheet.

	March 31, 2020
	(in millions)
2020(1)	$	56
2021	65
2022	43
2023	40
2024	35
Thereafter	240
Total lease payments	479
Less: interest(2)	(111)
Present value of lease liabilities(3)	$	368

____________

⁽¹⁾ Represents the estimated lease payments to be made for the remaining nine months of 2020.

⁽²⁾ Calculated using the interest rate for each lease.

⁽³⁾ Includes the current portion of $58 million.

Total lease payments in the above table exclude $128 million of legally binding minimum lease payments for leases signed but not yet commenced primarily related to the expansion of our world headquarters. These leases will commence in 2020 with a lease term of 16 years.

The following table provides information related to Nasdaq's lease term and discount rate:

	March 31, 2020
Weighted-average remaining lease term (in years)	10.5
Weighted-average discount rate	4.6	%

The following table provides supplemental cash flow information related to Nasdaq's operating leases:

	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
	(in millions)
Cash paid for amounts included in the measurement of operating lease liabilities	$	20	$	18
Lease assets obtained in exchange for new operating lease liabilities	$	—	$	16