XML 61 R35.htm IDEA: XBRL DOCUMENT

LEASES (Tables)

9 Months Ended

Sep. 30, 2019

The following table presents the carrying values of our leases and the classification on our Balance Sheet as of September 30, 2019.



($ in millions)	Balance Sheet Classification	At September 30, 2019
Operating lease assets	Other assets	$	116
Finance lease assets	Property and equipment	13
		$	129

Operating lease liabilities	Accrued liabilities	$	121
Finance lease liabilities	Debt	14
		$	135

Components of Lease Expense

Lease Term and Discount Rate



	At September 30, 2019
Weighted-average remaining lease term (in years)
Operating leases	11.4 years
Finance leases	1.2 years
Weighted-average discount rate
Operating leases	6.1%
Finance leases	5.0%

Other Information



($ in millions)	Nine Months Ended September 30, 2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows for finance leases	$	1
Operating cash flows for operating leases	33
Financing cash flows for finance leases	11
	$	45

The following table presents the lease costs and the classification on our Income Statement for the three and nine months ended September 30, 2019.



($ in millions)	Income Statement Classification	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	Marketing and sales expense General and administrative expense	$	7	$	24
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	1		3
Interest on lease liabilities	Interest expense	—		1
Variable lease cost	Marketing and sales expense	2		4
		$	10	$	32

Maturities of Operating Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of September 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾		Total
2019, remaining	$	8		$	1	$	9
2020	29			11		40
2021	22			2		24
2022	18			—		18
2023	16			—		16
Thereafter	101			—		101
Total lease payments	194			14		208
Less: Imputed interest	(73		)	—		(73		)
	$	121		$	14	$	135

_________________________

⁽¹⁾

Finance lease payments include $7 million related to a residual value guarantee associated with a purchase commitment for an operating property in New York, New York. See Footnote 11 “Contingencies and Commitments” for additional information regarding this transaction.

Maturities of Financing Lease Liabilities

The following table presents the maturity of our operating and financing lease liabilities as of September 30, 2019.



($ in millions)	Operating Leases			Finance Leases⁽¹⁾		Total
2019, remaining	$	8		$	1	$	9
2020	29			11		40
2021	22			2		24
2022	18			—		18
2023	16			—		16
Thereafter	101			—		101
Total lease payments	194			14		208
Less: Imputed interest	(73		)	—		(73		)
	$	121		$	14	$	135

_________________________

⁽¹⁾