Leases

6 Months Ended

Jun. 30, 2020

Note 12. 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 June 30, 2020 and December 31, 2019, assets recorded under finance leases were $231 million and $220 million, respectively, and accumulated depreciation associated with finance leases was $141 million and $127 million, respectively.

The components of lease expense were as follows:


	Three months ended June 30,				Six months ended June 30,
(In millions)	2020		2019		2020		2019
Finance lease cost
Depreciation of finance lease ROU assets	$	10	$	8	$	20	$	16
Interest on finance lease liabilities		1		1		2		2
Operating lease cost		6		6		13		13
Variable lease cost		1		1		1		1
Sublease income		(1)		(1)		(1)		(1)
Total lease cost	$	17	$	16	$	33	$	31

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


	Six months ended June 30,
(In millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	14	$	12
Operating cash flows for finance leases		2		2
Financing cash flows for finance leases		20		16
ROU assets obtained in exchange for lease obligations:
Operating leases		3		5
Finance leases		16		22

As of June 30, 2020, there were $35 million and $60 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 June 30, 2020 were as follows:


(In millions)	Operating Leases		Finance Leases
Year ended December 31,
2020 (excluding the six months ended June 30, 2020)	$	13	$	17
2021		22		28
2022		19		18
2023		15		12
2024		11		5
Thereafter		85		1
Total future minimum lease payments		165		81