Leases

12 Months Ended

Dec. 31, 2020

Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one to nine years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one to five years for each option. The exercise of lease renewal options is generally at our sole discretion. All of our existing leases are classified as operating leases.

Components of our lease costs are as follows (amounts in millions):


	Year Ended December 31, 2020		Year Ended December 31, 2019
Operating leases
Operating lease costs	$	75	$	75
Variable lease costs	20		20

Rental expense prior to our adoption of the new lease standard was $75 million for the year ended December 31, 2018.

Supplemental information related to our operating leases is as follows (amounts in millions):


	Year Ended December 31, 2020			Year Ended December 31, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	77		$	80


ROU assets obtained in exchange for new lease obligations	80			65


	At December 31, 2020			At December 31, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	4.48 years			5.00 years
Discount rate	3.40		%	4.02		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at December 31, 2020, are as follows (amounts in millions):


For the years ending December 31,
2021	$	75
2022	71
2023	64
2024	53
2025	33
Thereafter	18
Total future lease payments	$	314
Less imputed interest	(24)
Total lease liabilities	$	290

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2020 and December 31, 2019, were as follows (amounts in millions):


	At December 31, 2020		At December 31, 2019		Balance Sheet Classification
ROU assets	$	243	$	232	Other assets

Current lease liabilities	$	66	$	63	Accrued expenses and other current liabilities
Non-current lease liabilities	224		210		Other liabilities
	$	290	$	273	Total lease liabilities