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Leases

12 Months Ended

Dec. 31, 2019

Note 9. Leases

In the normal course of business, we enter into operating and finance lease agreements to support our operations. Operating leases primarily include office space for our corporate and field locations, US onshore compressors and drilling rigs, vessels and helicopters for offshore operations, storage facilities, and other miscellaneous assets. Finance leases include corporate office space, a trunkline in the DJ Basin, a floating production, storage and offloading vessel (FPSO) in West Africa, and vehicles. Our leasing activity is recorded and presented on a gross basis, with the exception of the FPSO which is recorded net to our interest.

Balance Sheet Information ROU assets and lease liabilities are as follows:



(millions)	Balance Sheet Location	December 31, 2019
ROU Assets
Operating Leases ⁽¹⁾	Other Noncurrent Assets	$	227
Finance Leases ⁽²⁾	Total Property, Plant and Equipment, Net	172
Total ROU Assets		$	399
Lease Liabilities
Current Liabilities
Operating Leases	Other Current Liabilities	$	88
Finance Leases	Other Current Liabilities	42
Noncurrent Liabilities
Operating Leases	Other Noncurrent Liabilities	164
Finance Leases	Long-Term Debt	163
Total Lease Liabilities		$	457


⁽¹⁾	Operating lease ROU assets include compressors of $89 million and office space of $80 million.


⁽²⁾	Finance lease ROU assets include office space of $90 million and a trunkline of $28 million, both net of accumulated amortization.

Statement of Operations Information The components of lease cost are as follows:



(millions)	Statement of Operations Location	Year Ended December 31, 2019
Operating Lease Cost	Various⁽¹⁾	$	110
Finance Lease Cost
Amortization Expense	Depreciation, Depletion and Amortization	38
Interest Expense	Interest, Net of Amount Capitalized	13
Short-term Lease Cost ⁽²⁾	Various ⁽¹⁾	424
Sublease Income	General and Administrative	(5		)
Total Lease Cost		$	580


⁽¹⁾	Cost classifications vary depending on the leased asset. Costs are primarily included within production expense and general and administrative expense. In addition, in accordance with the successful efforts method of accounting, certain lease costs may be capitalized when incurred and therefore, are included as part of oil and gas properties on our consolidated balance sheets.


⁽²⁾	Costs primarily relate to hydraulic fracturing services, well-to-well drilling rig contracts and other miscellaneous lease agreements. Amount excludes costs for leases with an initial term of one month or less.

Cash Flow Information Supplemental cash flow information is as follows:



	Year Ended December 31, 2019
(millions)	Operating Leases		Finance Leases
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows	$	74	$	12
Investing Cash Flows	36		—
Financing Cash Flows	—		42
Non-Cash Activities
ROU Assets Obtained in Exchange for Lease Liabilities ⁽¹⁾	127		26


⁽¹⁾	Amounts exclude the impact of adopting ASC 842 on January 1, 2019. See Note 1. Summary of Significant Accounting Policies.

Annual Lease Maturities As of December 31, 2019, maturities of lease liabilities were as follows:



(millions)	Operating Leases		Finance Leases		Total
2020	$	100	$	52	$	152
2021	60		38		98
2022	41		27		68
2023	26		23		49
2024	15		21		36
2025 and Thereafter	37		86		123
Total Lease Liabilities, Undiscounted	279		247		526
Less: Imputed Interest	27		42		69
Total Lease Liabilities ⁽¹⁾	$	252	$	205	$	457


⁽¹⁾	Includes the current portions of $88 million and $42 million for operating and finance leases, respectively.

Lease Commitments See Note 12. Commitments and Contingencies for lease commitments as of December 31, 2019.

Other Information As of December 31, 2019, other information related to our leases is as follows:



	Operating Leases		Finance Leases
Weighted-Average Remaining Lease Term	4.9 years		7.5 years
Weighted-Average Discount Rate	4.05	%	4.96	%

Leases