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Leases (Tables)

6 Months Ended

Jun. 30, 2019

The following table summarizes information related to the Company’s leases at June 30, 2019:



millions except lease term and discount rate	Operating Leases				Finance Leases
Assets
Other assets		$	539			$	—
Net properties and equipment		—				193
Total lease assets ⁽¹⁾		$	539			$	193

Liabilities
Current liabilities
Other current liabilities		$	249			$	—
Short-term debt - Anadarko		—				31
Long-term liabilities
Other		308				—
Long-term debt - Anadarko		—				230
Total lease liabilities ⁽¹⁾		$	557			$	261

Weighted-average remaining lease term (years)		5				16
Weighted-average discount rate ⁽²⁾		4.3		%		15.1		%


⁽¹⁾	Includes additions to ROU assets and lease liabilities of $126 million related to operating leases and $22 million related to finance leases for the six months ended June 30, 2019.

⁽²⁾

The FPSO finance lease commenced prior to the adoption of ASU 2016-02, Leases (Topic 842). In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying asset.

Summary of Lease Cost

The following table summarizes the Company’s lease cost before amounts recovered from partners:



	Three Months Ended			Six Months Ended
millions	June 30, 2019			June 30, 2019
Operating lease cost		$	70		$	148
Short-term lease cost		42			61
Variable lease cost		37			76
Finance lease cost
Amortization of ROU assets		10			20
Interest on lease liabilities		9			18
Total lease cost		$	168		$	323

The following table summarizes cash paid for amounts included in the measurement of lease liabilities:



	Six Months Ended
	June 30, 2019
millions	Operating Leases			Finance Leases
Operating cash flows		$	133		$	18
Investing cash flows		37			—
Financing cash flows		—			9

Operating Leases Maturity

The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities recorded on the Company’s Consolidated Balance Sheet at June 30, 2019:



millions	Operating Leases ⁽¹⁾			Finance Leases
Remainder of 2019		$	134		$	35
2020		191			62
2021		70			52
2022		49			48
2023		35			44
Thereafter		155			322
Total lease payments		$	634		$	563
Less portion representing imputed interest		77			302
Total lease liabilities		$	557		$	261

⁽¹⁾

For leases commencing prior to 2019, lease payments exclude payments to lessors for drilling rig services and real estate services, taxes, and common area maintenance.

Finance Leases Maturity

The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities recorded on the Company’s Consolidated Balance Sheet at June 30, 2019:



millions	Operating Leases ⁽¹⁾			Finance Leases
Remainder of 2019		$	134		$	35
2020		191			62
2021		70			52
2022		49			48
2023		35			44
Thereafter		155			322
Total lease payments		$	634		$	563
Less portion representing imputed interest		77			302
Total lease liabilities		$	557		$	261

⁽¹⁾

For leases commencing prior to 2019, lease payments exclude payments to lessors for drilling rig services and real estate services, taxes, and common area maintenance.

Future Minimum Lease Payments, Operating Leases

The following table summarizes future minimum lease payments related to the Company’s operating and finance leases as of December 31, 2018:



millions	Operating Leases			Finance Leases
2019		$	264		$	58
2020		139			50
2021		57			48
2022		35			45
2023		24			43
Thereafter		135			323
Total lease payments		$	654		$	567
Less portion representing imputed interest		*			319
Total lease liabilities		*			$	248


*	Prior to the adoption of ASU 2016-02, Leases (Topic 842) on January 1, 2019, operating lease liabilities were not recognized on the Company’s Consolidated Balance Sheets. Refer to Note 1—Summary of Significant Accounting Policies for additional information.

Future Minimum Lease Payments, Finance Leases

The following table summarizes future minimum lease payments related to the Company’s operating and finance leases as of December 31, 2018:



millions	Operating Leases			Finance Leases
2019		$	264		$	58
2020		139			50
2021		57			48
2022		35			45
2023		24			43
Thereafter		135			323
Total lease payments		$	654		$	567
Less portion representing imputed interest		*			319
Total lease liabilities		*			$	248

Prior to the adoption of ASU 2016-02, Leases (Topic 842) on January 1, 2019, operating lease liabilities were not recognized on the Company’s Consolidated Balance Sheets. Refer to Note 1—Summary of Significant Accounting Policies for additional information.