Leases

12 Months Ended

Dec. 31, 2019

The Company has operating leases primarily for land, equipment and machinery, 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 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 statement of cash flows. At December 31, 2019, the Company did not have any finance leases.

In 2019, the Company’s operating lease expenses recorded within the consolidated statement of operations were as follows ($ in millions):



Income Statement Classification	Year Ended December 31, 2019
Cost of services	$	2
Cost of product sales	1
Selling, general and administrative	51
Total operating lease expense⁽¹⁾	$	54

_____________


(1)	Includes leases less than one year and variable totaling $6 million and $2 million, respectively.

At December 31, 2019, the weighted-average remaining operating lease term was 18.7 years and the weighted average discount rate was 8.5%. The following table represents the future maturities of lease liabilities at December 31, 2019 ($ in millions):



2020	$	46
2021	44
2022	43
2023	42
2024	42
Thereafter	513
Total lease payment	730
Less: interest	(390		)
Present value of lease liability	$	340

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



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