Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Leases

As of June 30, 2020, we have right-of-use assets of $28 million recorded as Other Assets, $5 million of corresponding obligations recorded as Other Current Liabilities and $26 million of corresponding obligations recorded as Other Liabilities on the Partnership’s Condensed Consolidated Balance Sheet. All lease obligations outstanding during the three and six months ended June 30, 2020 were classified as operating leases, therefore all cash flows are reflected in Cash Flows from Operating Activities.

The following table presents the Partnership’s rental costs associated with field equipment and buildings.

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(In millions)
Rental Costs:
Field equipment	$	4	$	5	$	9	$	12
Office space	1		2		2		4

As of June 30, 2020, the weighted average remaining lease term is 6.9 years and the weighted average discount rate is 5.46%.

The following tables present the Partnership’s lease cost.

	Three Months Ended June 30, 2020
	Gathering and Processing		Transportation and Storage		Total
	(In millions)
Lease Cost:
Operating lease cost	$	1	$	—	$	1
Short-term lease cost	4		—		4
Total Lease Cost	$	5	$	—	$	5

	Three Months Ended June 30, 2019
	Gathering and Processing		Transportation and Storage		Total
	(In millions)
Lease Cost:
Operating lease cost	$	3	$	—	$	3
Short-term lease cost	4		—		4
Total Lease Cost	$	7	$	—	$	7

	Six Months Ended June 30, 2020
	Gathering and Processing		Transportation and Storage		Total
	(In millions)
Lease Cost:
Operating lease cost	$	3	$	—	$	3
Short-term lease cost	7		—		7
Variable lease cost	1		—		1
Total Lease Cost	$	11	$	—	$	11

	Six Months Ended June 30, 2019
	Gathering and Processing		Transportation and Storage		Total
	(In millions)
Lease Cost:
Operating lease cost	$	5	$	—	$	5
Short-term lease cost	10		1		11
Total Lease Cost	$	15	$	1	$	16

Under ASC 842, as of June 30, 2020, the Partnership has operating lease obligations expiring at various dates. The $4 million difference between undiscounted cash flows for operating leases and our $31 million of lease obligations is due to the impact of the applicable discount rate. Undiscounted cash flows for operating lease liabilities are as follows:

	Year Ended December 31,
	2020		2021		2022		2023		2024		2025 and After		Total
	(In millions)
Noncancellable operating leases	$	4	$	6	$	5	$	5	$	4	$	11	$	35