All of the Company’s leases are classified as operating leases and primarily consist of real estate leases for corporate offices, data centers, and other facilities. As of December 31, 2019, the weighted-average remaining lease term on these leases is approximately 9 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.06%. For the year ended December 31, 2019, right-of-use assets obtained under operating leases were $140 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions or covenants.

The table below presents balances reported in the consolidated statements of financial condition related to the Company’s leases for the period indicated.


	December 31, 2019
	(in millions)
Right-of-use assets¹	$	118
Lease liabilities¹	$	124

(1)Right-of-use assets are included in other assets and lease liabilities are included in accounts payable, accrued expenses and other liabilities in the Company’s consolidated statements of financial condition.

The table below presents balances reported in the consolidated statements of comprehensive income related to the Company’s leases for the period indicated.


	Year-Ended
	December 31, 2019
	(in millions)
Operating lease cost	$	25
Variable lease cost		4
Total lease cost	$	29

The table below reconciles the undiscounted cash flows of the Company’s leases to the present value of its operating lease payments for the period indicated.


	December 31, 2019
	(in millions)
2020	$	19
2021		17
2022		17
2023		15
2024		13
Thereafter		69
Total undiscounted operating lease payments		150
Less: imputed interest		(26)
Present value of operating lease liabilities	$	124

The table below presents the Company’s minimum annual lease commitments in accordance with ASC Topic 840 for the period indicated.


	December 31, 2018
Year	(in millions)
2019	$	18
2020		19
2021		16
2022		16
2023		15
Thereafter		83
	$	167