Effective January 1, 2019 the Company adopted the new US GAAP accounting rules in ASC Topic 842, Leases (ASC 842), using the modified retrospective method. The Company elected to follow the package of practical expedients provided under the transition guidance within ASC 842, the practical expedient to account for lease and non-lease components as a single lease, and to not include leases with an initial term of less than 12 months in lease assets and liabilities.

At adoption of ASC 842, January 1, 2019, the Company had lease right-of-use assets of $786 million ($537 million operating and $249 million financing) and lease liabilities of $839 million ($554 million operating and $285 million financing). The adoption had no material effect on retained earnings.

The Company leases certain facilities and equipment to support its operations around the world. These leases generally require the Company to pay maintenance, insurance, taxes and other operating costs in addition to rent. Renewal options are common in longer term leases; however, it is rare that the Company initially intends that a lease option will be exercised due to the cyclical nature of the Company’s business. Residual value guarantees are not typically part of the Company’s leases. Occasionally, the Company sub-leases excess facility space, generally at terms similar to the source lease. The Company reviews agreements at inception to determine if they include a lease and, when they do, uses its incremental borrowing rate to determine the present value of the future lease payments as most do not include implicit interest rates.

At adoption of ASC 842, for those existing leases that included a periodic rent adjustment based on an index (or a similar variable rate), the asset and liability balances were updated with the January 1, 2019 index. Going forward, new such leases are initially valued at the index rate in effect on the lease commencement date, and, for all continuing such leases, subsequent changes in variable rates will be recorded to expense.

	March 31,		December 31,
	2019		2018
Lease right-of-use assets:
Operating	$	542	$	—
Financing		247		—
Total	$	789	$	—

	March 31,		December 31,
	2019		2018
Current portion of lease liabilities:
Operating	$	91	$	—
Financing		24		7
Total	$	115	$	7

	March 31,		December 31,
	2019		2018
Long-term portion of lease liability:
Operating	$	468	$	—
Financing		260	$	222
Total	$	728	$	222

	Three Months Ended
	March 31, 2019
Lease cost
Finance lease cost
Amortization of right-of-use assets	$	8
Interest on lease liabilities		4
Operating lease cost		33
Short-term lease cost		16
Variable lease cost		—
Sub-lease income		(3	)
Total	$	58

Supplemental information related to the Company’s leases for the three months ended March 31, 2019 was as follows (in millions):

	Three Months Ended
	March 31, 2019
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	4
Operating cash flows from operating leases		33
Financing cash flows from finance leases		7

Right-of-use assets obtained in exchange for new finance lease liabilities	$	6
Right-of-use assets obtained in exchange for new operating lease liabilities		31

Weighted average remaining lease term - finance leases	17 years
Weighted average remaining lease term - operating leases	10 years

Weighted average discount rate - finance leases	5.53%
Weighted average remaining lease term - operating leases	5.03%

Future minimum lease commitments for leases with initial or remaining terms of one year or more at March 31, 2019, are payable as follows (in millions):

Undiscounted Cash Flows	Finance			Operating
04/01/2019 - 03/31/2020	$	38		$	121
04/01/2020 - 03/31/2021		34			100
04/01/2021 - 03/31/2022		28			84
04/01/2022 - 03/31/2023		21			64
04/01/2023 - 03/31/2024		17			50
04/01/2024 - beyond		254			302
Total lease payments		392			721
Less: Interest		(108	)		(162	)
Present value of lease liabilities	$	284		$	559