Leases

9 Months Ended

Sep. 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 September 30, 2020 and December 31, 2019, assets recorded under finance leases were $235 million and $220 million, respectively, and accumulated depreciation associated with finance leases was $148 million and $127 million, respectively.

The components of lease expense were as follows:


	Three months ended September 30,				Nine months ended September 30,
(In millions)	2020		2019		2020		2019
Finance lease cost
Depreciation of finance lease ROU assets	$	10	$	9	$	29	$	25
Interest on finance lease liabilities		1		1		2		4
Operating lease cost		6		6		19		19
Variable lease cost		—		1		1		3
Sublease income		(1)		(1)		(2)		(2)
Total lease cost	$	16	$	17	$	49	$	48

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


	Nine months ended September 30,
(In millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	21	$	17
Operating cash flows for finance leases		2		4
Financing cash flows for finance leases		28		25
ROU assets obtained in exchange for lease obligations:
Operating leases		3		7
Finance leases		23		39

As of September 30, 2020, there were $34 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 September 30, 2020 were as follows:


(In millions)	Operating Leases		Finance Leases
Year ended December 31,
2020 (excluding the nine months ended September 30, 2020)	$	7	$	10
2021		22		33
2022		19		23
2023		15		16
2024		11		8
Thereafter		85		4
Total future minimum lease payments		158		94
Less imputed interest		(42)		(3)
Total	$	116	$	92