Leases (Tables)

3 Months Ended

Mar. 31, 2020

Finance leases are recorded net of $3 million in accumulated amortization as of March 31, 2020.

As a result of the unprecedented industry conditions described in “Note 1 – General”, we impaired our right of use assets by $73 million to their respective fair values in the three months ended March 31, 2020, as also summarized at “Note 6 - Long-Lived Asset Impairments and Other”.



(Dollars in millions)	Classification	3/31/2020		12/31/2019
Balance Sheet Components:
Assets
Operating	Other Non-Current Assets	$	172	$	256
Finance	Property Plant and Equipment, Net	62		62
Total lease assets		$	234	$	318

Liabilities
Current
Operating	Other Current Liabilities	$	79	$	79
Finance	Short-term Borrowings and Current Portion of Long-term Debt	11		10

Non-Current
Operating	Other Non-Current Liabilities	196		213
Finance	Long-term Debt	52		54
Total lease liabilities		$	338	$	356

Lease, Cost



	Successor			Predecessor
	Three Months Ended			Three Months Ended
(Dollars in millions)	3/31/2020			3/31/2019
Lease Expense Components:
Operating lease expense	$	24		$	30
Short-term and variable lease expense	22			20
Finance lease expense: Amortization of ROU assets and interest on lease liabilities	4			3
Sublease income	(1		)	(2		)
Total lease expense	$	49		$	51

Operating and Finance Lease Maturities



	Operating		Finance
(Dollars in millions)	Leases		Leases
Maturity of Lease Liabilities as of March 31, 2020:
Remainder of 2020	$	76	$	12
2021	83		13
2022	57		11
2023	31		11
2024	23		11
After 2024	138		25
Total Lease Payments	408		83
Less: Interest	133		20
Present Value of Lease Liabilities	$	275	$	63

Supplemental Lease Disclosures



	Successor			Predecessor
	Three Months Ended			Three Months Ended
(Dollars in millions except years and percentages)	3/31/2020			3/31/2019
Other Supplemental Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	28		$	32
Operating cash outflows from finance leases	$	1		$	1
Financing cash outflows from finance leases	$	2		$	2

ROU assets obtained in exchange of new operating lease liabilities	$	19		$	19
ROU assets obtained in exchange of new finance lease liabilities	$	2		$	—
Loss on sale leaseback transactions (short-term)^(a)	$	—		$	36

Weighted-average remaining lease term (years)
Operating leases	7.7			6.7
Finance leases	6.4			7.9

Weighted-average discount rate (percentages)
Operating leases	9.2		%	13.1		%
Finance leases	9.1		%	5.6		%

(a) Included in “Restructuring, Asset Impairments and Other” of our Condensed Consolidated Statements of Operations and “Other Net Income Adjustments” of our Condensed Consolidated Statements of Cash Flows.