Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lease, Cost

Supplemental unaudited consolidated cash flow statement information related to leases:

	Six Months Ended June 30, 2019
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	208
Operating cash flows from finance leases	4
Financing cash flows from finance leases	2

Lease expense consisted of the following:

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(Dollars in millions)
Operating and short-term lease cost	$	92	196
Finance lease cost:
Amortization of right-of-use assets	3		7
Interest on lease liability	3		6
Total finance lease cost	6		13
Total lease cost	$	98	209

Assets And Liabilities, Lessee

Supplemental unaudited consolidated balance sheet information and other information related to leases:

		June 30,
Leases (millions)	Classification on the Balance Sheet	2019
Assets
Operating lease assets	Operating lease assets	$	1,183
Finance lease assets	Property, plant and equipment, net of accumulated depreciation	150
Total leased assets		$	1,333
Liabilities
Current
Operating	Other current liabilities	$	269
Finance	Current portion of long-term debt	7
Noncurrent
Operating	Noncurrent operating lease liabilities	962
Finance	Long-term debt	155
Total lease liabilities		$	1,393
Weighted-average remaining lease term (years)
Operating leases		8.8
Finance leases		13.6
Weighted-average discount rate
Operating leases		6.63		%
Finance leases		5.68		%

Lessee, Operating Lease, Liability, Maturity

As of June 30, 2019, maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases
	(Dollars in millions)
2019 (remaining six months)	$	155		9
2020	271			15
2021	232			16
2022	203			16
2023	172			17
Thereafter	614			165
Total lease payments	1,647			238
Less: interest	(416		)	(76	)
Total	1,231			162
Less: current portion	(269		)	(7	)
Long-term portion	$	962		155

Finance Lease, Liability, Maturity

As of June 30, 2019, maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases
	(Dollars in millions)
2019 (remaining six months)	$	155		9
2020	271			15
2021	232			16
2022	203			16
2023	172			17
Thereafter	614			165
Total lease payments	1,647			238
Less: interest	(416		)	(76	)
Total	1,231			162
Less: current portion	(269		)	(7	)
Long-term portion	$	962		155

Schedule of Future Minimum Lease Payments for Capital Leases

The future annual minimum payments under capital lease agreements as of December 31, 2018 were as follows:

	Future Minimum Payments
	(Dollars in millions)
Capital lease obligations:
2019	$	16
2020	15
2021	16
2022	16
2023	17
2024 and thereafter	164
Total minimum payments	244
Less: amount representing interest and executory costs	(81		)
Present value of minimum payments	163
Less: current portion	(6		)
Long-term portion	$	157

Schedule of Future Minimum Rental Payments for Operating Leases

At December 31, 2018, our future rental commitments for operating leases were as follows:

	Operating Leases
	(Dollars in millions)
2019	$	396
2020	259
2021	219
2022	164
2023	137
2024 and thereafter	613
Total future minimum payments (1)	$	1,788

_______________________________________________________________________________

(1)

Minimum payments have not been reduced by minimum sublease rentals of $29 million due in the future under non-cancelable subleases.