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.

	June 30,		December 31,
	2019		2018
Current portion of lease liabilities:
Operating	$	88	$	—
Financing		28		7
Total	$	116	$	7

	June 30,		December 31,
	2019		2018
Long-term portion of lease liability:
Operating	$	431	$	—
Financing		265	$	222
Total	$	696	$	222

	Three Months Ended			Six Months Ended
	June 30, 2019			June 30, 2019
Lease cost
Finance lease cost
Amortization of right-of-use assets	$	9		$	17
Interest on lease liabilities		3			7
Operating lease cost		27			60
Short-term lease cost		17			33
Sub-lease income		(3	)		(6	)
Total	$	53		$	111

Supplemental information related to the Company’s leases is as follows (in millions):

	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	3	$	7
Operating cash flows from operating leases		28		61
Financing cash flows from finance leases		8		15
Right-of-use assets obtained in exchange for new:
Operating lease liabilities		—		31
Finance lease liabilities	$	5	$	11

Weighted average remaining lease term:
Operating leases			10 years
Finance leases			17 years
Weighted average discount rate:
Operating leases				5.04	%
Finance leases				5.46	%

Future minimum lease commitments for leases with initial or remaining terms of one year or more at June 30, 2019, are payable as follows (in millions):

	Operating			Finance
2019	$	81		$	27
2020		126			45
2021		88			37
2022		69			27
2023		53			19
Thereafter		281			263
Total lease payments		698			418
Less: Interest		(179	)		(125	)
Present value of lease liabilities	$	519		$	293