Leases

3 Months Ended

Mar. 31, 2020

Leases

Leases

9.  LEASES

The Company has both operating and finance leases. The majority of the Company’s leases are operating leases related to buildings. The majority of the Company’s finance leases are related to furniture and equipment.

The Company’s leases have remaining lease terms of up to 15 years, some of which include options to extend the lease anywhere from one to ten years and are included in the lease term when it is reasonably certain the Company will exercise the option.

Finance lease cost, variable lease cost, and short-term lease cost are not material. The components of operating lease expense are as follows:

			Three months ended March 31,
	Classification		2020		2019
Operating lease expense		Selling, general, and administrative expense, Product costs, and Service costs1	$	11	$	6

¹ Excluding depreciation and amortization

Supplemental lease balance sheet information consists of the following:

			March 31,		December 31,
	Classification		2020		2019
Assets:
Operating		Non-current operating lease assets	$	176	$	176
Finance		Property, plant, and equipment, net		5		5
Total lease assets			$	181	$	181
Liabilities:
Current
Operating		Current operating lease liabilities	$	41	$	40
Finance		Current portion long-term debt		2		2
Non-current
Operating		Operating lease liabilities		172		173
Finance		Long-term debt		1		1
Total lease liabilities			$	216	$	216

Supplemental lease cash flow information is as follows:

	Three months ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10	$	7
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		12		—

Other supplemental lease information consists of the following:

	March 31,		December 31,
	2020		2019
Weighted average remaining lease term (in years)
Operating leases		8		9
Finance leases		3		3
Weighted average discount rate
Operating leases		6.4%		6.4%
Finance leases		3.5%		3.5%

Maturities of lease liabilities are as follows:

	20201		2021		2022		2023		2024		Thereafter		Less: imputed interest		Total minimum lease payments
Operating leases	$	32	$	42	$	32	$	29	$	26	$	118	$	(66)	$	213
Finance leases		2		1		1		—		—		—		(1)		3

¹  Excludes the three months ended March 31, 2020.