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 June 30, 2020, the weighted-average remaining lease term on these leases is approximately 8 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.11%. For the six months ended June 30, 2020, right-of-use assets obtained under operating leases were $1 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions or covenants.

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


	June 30, 2020		December 31, 2019
	(in millions)
Right-of-use assets¹	$	110	$	118
Lease liabilities¹	$	118	$	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 unaudited condensed consolidated statements of financial condition.

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Operating lease cost	$	6	$	6	$	12	$	12
Variable lease cost		1		1		2		2
Total lease cost	$	7	$	7	$	14	$	14

The tables below reconcile the undiscounted cash flows of the Company’s leases to the present value of its operating lease payments for the periods indicated.


	June 30, 2020
	(in millions)
2020 (remaining)	$	10
2021		17
2022		17
2023		15
2024		14
2025		14
Thereafter		56
Total undiscounted operating lease payments		143
Less: imputed interest		(25)
Present value of operating lease liabilities	$	118


	December 31, 2019
Year	(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