Leases

We have office space, warehouse facilities, vehicles, and equipment under non-cancelable operating leases with third parties. The leases have remaining lease terms of one year to eight years. Leases with an initial term of 12 months or less are not recognized on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Rent expense charged to operations under operating leases during the three and six months ended June 30, 2019 was $6 million and $12 million, respectively. Variable rent and short-term lease expenses were not material.

The following table presents the lease balances within the consolidated balance sheet and other supplemental information related to our leases as of June 30, 2019:



(In millions, except lease terms and discount rates)	June 30, 2019
Operating Leases:
Operating lease right-of-use assets, net	$	60
Accrued expenses, other	$	20
Other liabilities	42
Total operating lease liabilities	$	62
Finance Leases:
Property and equipment, net	$	1
Current maturities of long-term debt and other borrowings	$	—
Long-term debt and other borrowings, net	1
Total finance lease liabilities	$	1
Weighted-average remaining lease term:
Operating leases	4.1 years
Finance leases	3.1 years
Weighted-average discount rate:
Operating leases	3.6		%
Finance leases	10.1		%

Supplemental cash flow information related to leases was as follows:



	Three Months Ended		Six Months Ended
(In millions)	June 30, 2019		June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6	$	12
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4	$	71
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—	$	1

The following table presents the maturity of our operating lease liabilities as of June 30, 2019:



(In millions)	Operating Leases
2019 (remaining 6 months)	$	12
2020	19
2021	14
2022	9
2023	5
Thereafter	8
Total minimum lease payments	67
Less: amount representing interest	(5		)
Present value of net minimum lease payments	62
Less: current portion of operating lease obligation	(20		)
Long-term operating lease obligation	$	42

As of June 30, 2019, we had additional operating leases which have not yet commenced, related to our new corporate headquarters and pharmacy of $128 million. These operating leases are expected to commence in fiscal year 2020 with lease terms of 13 to 20 years.