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 nine months ended September 30, 2019 was $6 million and $18 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 operating leases as of:



(In millions, except lease terms and discount rates)	September 30, 2019
Operating Leases:
Operating lease right-of-use assets, net	$	75
Accrued expenses, other	$	19
Other liabilities	58
Total operating lease liabilities	$	77

Weighted average remaining lease term	6.0 years

Weighted average discount rate	3.7		%

Supplemental cash flow information related to leases was as follows:



	Three Months Ended		Nine Months Ended
(In millions)	September 30, 2019		September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6	$	18
Right-of-use assets obtained in exchange for new operating lease liabilities	$	20	$	91

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



(In millions)	Operating Leases
2019 (remainder of year)	$	6
2020	21
2021	17
2022	10
2023	8
Thereafter	25
Total minimum lease payments	87
Less: amount representing interest	(10		)
Present value of net minimum lease payments	77
Less: current portion of operating lease obligation	(19		)
Long-term operating lease obligation	$	58

As of September 30, 2019, we had additional operating leases of $131 million, which have not yet commenced, related to our new corporate headquarters and full-service veterinary pharmacy in Maine and compounding pharmacy in Arizona. These operating leases are expected to commence in fiscal year 2020 with lease terms of 13 to 20 years.

Financing lease balances as of September 30, 2019 and December 29, 2018 were not material.