Leases (Notes)

6 Months Ended

Jun. 30, 2020

Leases of Lessee Disclosure [Text Block]

12. Leases

We have operating leases for transportation agreements, office space, vehicles, and field equipment. We have finance leases for field equipment and vehicles. Our leases have remaining lease terms ranging from less than one year to 21 years, some of which may include options to extend leases up to 20 years, and some of which may include options to terminate the leases in less than one year. Extension options on certain compressors and field equipment were included in the lease terms used to calculate our operating lease assets and liabilities as it is reasonably certain that we exercise those options. Operating and finance leases are included on our condensed consolidated balance sheet as follows:


	Location in Condensed Consolidated Balance Sheet	As of
				June 30, 2020			December 31, 2019
		(millions)
Assets
Operating lease assets	Operating lease assets	$	91		$	107
Finance lease assets	Property, plant and equipment	22			25
Total right of use assets		113			132

Liabilities
Current liabilities
Operating lease liabilities	Other current liabilities	$	23		$	24
Finance lease liabilities	Current debt	3			3
Noncurrent liabilities
Operating lease liabilities	Operating lease liabilities	$	76		$	88
Finance lease liabilities	Long-term debt	21			22
Total lease liabilities		$	123		$	137

Variable lease costs primarily consist of common area maintenance on our office spaces and variable transportation costs. Interest on finance lease liabilities was immaterial for the three and six months ended June 30, 2020 and 2019, respectively. The components of lease expense are as follows:


	Location in Condensed Consolidated Statement of Operations	Three Months Ended June 30,									Six Months Ended June 30,
				2020			2019			2020			2019
		(millions)
Operating lease cost	Operating and maintenance expense	$	6		$	5		$	14		$	11
Finance lease cost
Amortization of right of use assets	Depreciation and amortization expense	1			—			1			—

Variable lease cost	Operating and maintenance expense	1			1			3			3
Short term lease cost	Operating and maintenance expense	1			1			2			2
Total lease cost		$	9		$	7		$	20		$	16

Maturities of operating and finance lease liabilities under non-cancelable leases as of June 30, 2020 are as follows:


	Future Minimum Lease Payments as of June 30, 2020
	Operating Leases		Finance Leases
	(millions)
2020 - remainder	$	13	$	2
2021	25		4
2022	21		4
2023	17		4
2024	9		4
Thereafter	29		9
Total lease payments	$	114	$	27
Less imputed interest	(15)		(3)
Total lease liabilities	$	99	$	24

Supplemental cash flow information related to leases is as follows:


	Six Months Ended June 30,
	2020			2019
	(millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14		$	12
Operating cash flows from finance leases	2			—

Right-of-use assets obtained in exchange for operating lease obligations:	$	—		$	6
Right-of-use assets obtained in exchange for finance lease obligations:	$	1		$	—

Other information related to operating leases as follows:
Weighted average remaining lease term	6 years			5 years
Weighted average discount rate	4.00		%	4.00		%

Other information related to finance leases as follows:
Weighted average remaining lease term	5 years			—
Weighted average discount rate	3.00		%	—		%