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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Balance Sheet Classification of Lease Assets and Liabilities



(In millions)	June 30, 2019
Assets
Operating lease assets⁽¹⁾	$	361
Finance lease assets⁽²⁾	24
Total lease assets	$	385

Liabilities
Current
Operating lease liabilities⁽¹⁾	$	74
Finance lease liabilities⁽²⁾	7
Noncurrent
Operating lease liabilities⁽¹⁾	327
Finance lease liabilities⁽²⁾	11
Total lease liabilities	$	419

Schedule of Cost, Supplemental Cash Flow and Other Information Related to Leases

Components of Lease Cost



(In millions)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost⁽¹⁾	$	38	$	77
Finance lease cost⁽²⁾
Amortization of right-of-use assets	1		2
Interest on lease liabilities	—		—
Total lease cost	$	39	$	79

⁽¹⁾Operating lease expense is included within cost of processing and services, cost of product and selling, and general and administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s consolidated statements of income. Operating lease cost includes approximately $15 million and $28 million of variable lease costs for the three and six months ended June 30, 2019, respectively.

⁽²⁾Finance lease expense is recorded as depreciation and amortization expense within cost of processing and services, cost of product and selling, and general and administrative expense, dependent upon the nature and use of the ROU asset, and interest expense in the Company’s consolidated statements of income.

Supplemental Cash Flow Information



(In millions)	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	53
Operating cash flows from finance leases	—
Financing cash flows from finance leases	11

Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	56
Finance leases	15

Lease Term and Discount Rate



	June 30, 2019
Weighted-average remaining lease term
Operating leases	6 years
Finance leases	3 years
Weighted-average discount rate
Operating leases	3.5	%
Finance leases	3.5	%

Operating Lease Maturity under ASC 842

Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, 2019:



(In millions)
Year ending December 31,	Operating Leases ⁽¹⁾			Finance Leases
2019	$	45		$	2
2020	79			7
2021	70			7
2022	58			1
2023	47			1
Thereafter	140			1
Total lease payments	439			19
Less: Interest	(38		)	(1		)
Present value of lease liabilities	$	401		$	18

⁽¹⁾Operating lease payments include $61 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $13 million of legally binding minimum lease payments for leases signed but not yet commenced. Operating leases that have been signed but not yet commenced are for real estate and equipment and will commence in 2019 with lease terms of one to seven years.

Finance Lease Maturity under ASC 842

Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, 2019:



(In millions)
Year ending December 31,	Operating Leases ⁽¹⁾			Finance Leases
2019	$	45		$	2
2020	79			7
2021	70			7
2022	58			1
2023	47			1
Thereafter	140			1
Total lease payments	439			19
Less: Interest	(38		)	(1		)
Present value of lease liabilities	$	401		$	18

Operating Lease Maturity under ASC 840

Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at December 31, 2018:



(In millions)
Year ending December 31,
2019	$	94
2020	75
2021	62
2022	51
2023	40
Thereafter	108
Total	$	430