Leases

3 Months Ended

Mar. 31, 2020

Note 13. Leases

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use assets, Current portion of lease liability and Long-term lease liability on the Condensed Consolidated Statements of Financial Position. Finance leases are included in Property and equipment, net; Current portion of long-term debt and Long-term debt on the Condensed Consolidated Statements of Financial Position.

As of March 31, 2020 and December 31, 2019, assets recorded under finance leases were $222 million and $220 million, respectively, and accumulated depreciation associated with finance leases was $134 million and $127 million, respectively.

The components of lease expense were as follows:


	Three months ended March 31,
(In millions)	2020		2019
Finance lease cost
Depreciation of finance lease ROU assets	$	10	$	8
Interest on finance lease liabilities		1		1
Operating lease cost		7		7
Variable lease cost		—		—
Sublease income		(1)		(1)
Total lease cost	$	17	$	16

Supplemental cash flow information and other information for leases was as follows:


	As of March 31,
(In millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		7	$	6
Operating cash flows for finance leases		1		1
Financing cash flows for finance leases		9		8
ROU assets obtained in exchange for lease obligations:
Operating leases		2		3
Finance leases		5		10

As of March 31, 2020, there was $35 million and $58 million of finance leases included within Current portion of long-term debt and Long-term debt, respectively, on the Condensed Consolidated Statements of Financial Position. Future minimum lease payments under non-cancellable leases as of March 31, 2020 were as follows:


(In millions)	Operating Leases		Finance Leases
Year ended December 31,
2020 (excluding the three months ended March 31, 2020)	$	20	$	27
2021		23		29
2022		20		19
2023		15		12
2024		11		5
Thereafter		85		1
Total future minimum lease payments		174		92