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Leases (Tables)
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Schedule of Right-of-use Assets and Lease Liabilities The following table presents Devon’s right-of-use assets and lease liabilities as of June 30, 2019.

 

 

Finance

 

 

Operating

 

 

Total

 

Right-of-use assets

 

$

209

 

 

$

64

 

 

$

273

 

Lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current lease liabilities (1)

 

$

7

 

 

$

39

 

 

$

46

 

Long-term lease liabilities

 

 

239

 

 

 

24

 

 

 

263

 

Total lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Current lease liabilities are included in other current liabilities on the consolidated balance sheets.
Schedule of Total Lease Cost

 

The following table presents Devon’s total lease cost.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

June 30, 2019

 

Operating lease cost

Property, plant and equipment; G&A

 

$

12

 

 

$

25

 

Short-term lease cost (1)

Property, plant and equipment; G&A

 

 

21

 

 

 

45

 

Financing lease cost:

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

DD&A

 

 

6

 

 

 

12

 

Interest on lease liabilities

Net financing costs

 

 

2

 

 

 

5

 

Variable lease cost

G&A

 

 

—

 

 

 

1

 

Lease income

G&A

 

 

(1

)

 

 

(2

)

Net lease cost

 

 

$

40

 

 

$

86

 

 

(1)

Short-term lease cost excludes leases with terms of one month or less.

 
Schedule of Additional Lease Information

The following table presents Devon’s additional lease information for the three and six months ended June 30, 2019.

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2019

 

 

 

Finance

 

 

Operating

 

 

Finance

 

 

Operating

 

Cash outflows for lease liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flows

 

$

1

 

 

$

—

 

 

$

3

 

 

$

1

 

Investing cash flows

 

$

—

 

 

$

12

 

 

$

—

 

 

$

27

 

Right-of-use assets obtained in exchange for new

   lease liabilities

 

$

—

 

 

$

1

 

 

$

—

 

 

$

1

 

Weighted average remaining lease term (years)

 

 

8.5

 

 

 

1.9

 

 

 

8.5

 

 

 

1.9

 

Weighted average discount rate

 

 

4.2

%

 

 

3.2

%

 

 

4.2

%

 

 

3.2

%
Maturities of Lease Liabilities

 

The following table presents Devon’s maturity analysis as of June 30, 2019 for leases expiring in each of the next 5 years and thereafter.

 

 

Finance

 

 

Operating

 

 

Total (1)

 

2019

 

$

3

 

 

$

22

 

 

$

25

 

2020

 

 

7

 

 

 

32

 

 

 

39

 

2021

 

 

7

 

 

 

8

 

 

 

15

 

2022

 

 

8

 

 

 

1

 

 

 

9

 

2023

 

 

8

 

 

 

1

 

 

 

9

 

Thereafter

 

 

306

 

 

 

1

 

 

 

307

 

Total lease payments

 

 

339

 

 

 

65

 

 

 

404

 

Less: interest

 

 

(93

)

 

 

(2

)

 

 

(95

)

Present value of lease liabilities

 

$

246

 

 

$

63

 

 

$

309

 

 

(1)

Under previous lease accounting standard, ASC 840, Devon’s lease obligations as of December 31, 2018 expiring in each of the next 5 years and thereafter were $61 million for 2019, $48 million for 2020, $18 million for 2021, $9 million for 2022, $8 million for 2023 and $33 million thereafter.

 
Schedule of Expected Lease Income The following table presents Devon’s expected lease income as of June 30, 2019 for each of the next 5 years and thereafter.

 

 

Operating

 

 

 

Lease Income (1)

 

2019

 

$

3

 

2020

 

 

6

 

2021

 

 

7

 

2022

 

 

7

 

2023

 

 

7

 

Thereafter

 

 

53

 

Total

 

$

83

 

 

(1)

Included in operating lease income is approximately $30 million related to leases which have been executed but not yet commenced.