Leases

9 Months Ended

Sep. 30, 2019

The Company has operating leases primarily for land, buildings, office space and certain office equipment under non-cancellable lease agreements. Leases with an initial term of 12 months or less are not recorded on the consolidated condensed balance sheet. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of these lease renewal options is at the Company’s sole discretion. Cash paid for operating leases is reported in operating activities on the consolidated condensed statement of cash flows.

For the quarter and nine months ended September 30, 2019, the Company’s operating lease expenses recorded within the consolidated condensed statement of operations were as follows ($ in millions):



Income Statement Classification	Quarter Ended September 30, 2019		Nine Months Ended September 30, 2019
Cost of services	$	1	$	2
Cost of product sales	—		1
Selling, general and administrative	13		38
Total operating lease expense⁽¹⁾	$	14	$	41

___________


(1)	Includes leases less than one year, which were not significant.

At September 30, 2019, the weighted-average remaining operating lease term was 18.7 years and the weighted average discount rate was 8.6%. The following table represents the future maturities of lease liabilities at September 30, 2019 ($ in millions):



2019 remaining	$	11
2020	46
2021	44
2022	42
2023	42
Thereafter	540
Total lease payment	$	725
Less: interest	(391		)
Present value of lease liability	$	334

Future minimum lease commitments at December 31, 2018 ($ in millions):



2019	$	48
2020	44
2021	41
2022	40
2023	39
Thereafter	461
Total	$	673