Leases (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of lease-related assets and liabilities

The following table presents our lease-related assets and liabilities at March 31, 2019 (dollars in millions):


	Balance Sheet Classification		March 31, 2019
Assets:
Operating leases		Right-of-use operating lease assets	$	1,812
Finance leases		Property and equipment		590

Total lease assets			$	2,402

Liabilities:
Current:
Operating leases		Other accrued expenses	$	310
Finance leases		Long-term debt due within one year		39
Noncurrent:
Operating leases		Right-of-use operating lease obligations		1,494
Finance leases		Long-term debt		519

Total lease liabilities			$	2,362

Weighted-average remaining term:
Operating leases				12.3 years
Finance leases				9.2 years
Weighted-average discount rate:
Operating leases(1)				5.6	%
Finance leases				5.4	%

(1)	Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

Schedule of lease expense for finance and operating leases

The following table presents certain information related to lease expense for finance and operating leases for the quarter ended March 31, 2019 (dollars in millions):


	2019
Finance lease expense:
Amortization of leased assets	$	17
Interest of lease liabilities		6
Operating leases(2)		94
Short-term lease expense(2)		78
Variable lease expense(2)		39

Total lease expense	$	234

(2)	Expenses are included in “other operating expenses” in our condensed consolidated income statement.

Schedule of supplemental cash flow information

The following table presents supplemental cash flow information for the quarter ended March 31, 2019 (dollars in millions):


	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	144
Operating cash flows for finance leases		6
Financing cash flows for finance leases		17

Schedule of undiscounted cash flows to the finance lease liabilities and operating lease liabilities recorded on balance sheet

The following table reconciles the undiscounted cash flows to the finance lease liabilities and operating lease liabilities recorded on the balance sheet at March 31, 2019 (dollars in millions):


	Operating Leases			Finance Leases
2019	$	294		$	72
2020		370			92
2021		315			71
2022		254			62
2023		198			52
Thereafter		1,265			318

Total minimum lease payments		2,696			667
Less: amount of lease payments representing interest		(892	)		(109	)

Present value of future minimum lease payments		1,804			558
Less: current obligations under leases		(310	)		(39	)

Long-term lease obligations	$	1,494		$	519