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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Right-of-use assets for operating and finance leases

As of January 1, 2019, upon initial recognition, our ROU assets for operating and finance leases were comprised of the following:



(in millions)	January 1, 2019 (initial recognition)
Pipeline and storage agreements (1)	$	29
Railcar leases (2)	15
Real Estate and other leases (3)	35
Total ROU assets	$	79

(1) Includes finance leased assets of $1 million as of January 1, 2019.

(2) Includes $14 million of railcar leases recognized by CVR Partners.

(3) Includes finance leased assets of $25 million as of January 1, 2019.

Lease liabilities for operating and finance leases

As of January 1, 2019, upon initial recognition, our lease liabilities for operating and finance leases were comprised of the following:



(in millions)	Consolidated Balance Sheet Classification	January 1, 2019 (initial recognition)
Current liabilities:
Operating leases	Other current liabilities	$	14
Finance leases	Other current liabilities	2
Long-term liabilities:
Operating leases	Other long-term liabilities	40
Finance leases	Long-term debt and finance lease obligations, net of current portion	23
Total lease liabilities		$	79

Summary of right of use asset and lease liability balances for operating and finance leases

The following tables summarize the right of use asset and lease liability balances for the Company’s operating and finance leases at March 31, 2019:



(in millions)	March 31, 2019
Operating Leases:
ROU assets, net
Pipeline and storage	$	26
Railcars	14
Real estate and other	11
Lease liability
Pipelines and storage	$	27
Railcars	14
Real estate and other	9



(in millions)	March 31, 2019
Financing Leases:
ROU assets, net
Pipeline and storage	$	31
Real estate and other	27
Lease liability
Pipelines and storage	$	42
Real estate and other	27

Lease expense, lease terms, and discount rates

For the three months ended March 31, 2019, we recognized net lease expense comprised of the following components:



(in millions)	March 31, 2019
Operating lease expense	$	4
Financing lease expense:
Amortization of ROU	$	2
Interest expense on lease liability	2

The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and liabilities:



	March 31, 2019		January 1, 2019
Weighted-average remaining lease term (years)
Operating Leases	4		4
Finance Leases	10		10
Weighted-average discount rate
Operating Leases	5.8	%	5.8	%
Finance Leases	9.6	%	9.8	%

Summary of Remaining Minimum Lease Payments for Operating Leases

The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at March 31, 2019:



(in millions)	Operating Leases			Financing Leases
Remainder of 2019	$	13		$	8
2020	14			11
2021	12			11
2022	9			11
2023	6			10
Thereafter	4			53
Total lease payments	58			104
Less: imputed interest	(8		)	(35		)
Total lease liability	$	50		$	69

Summary of Remaining Minimum Lease Payments for Finance Leases

The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at March 31, 2019:



(in millions)	Operating Leases			Financing Leases
Remainder of 2019	$	13		$	8
2020	14			11
2021	12			11
2022	9			11
2023	6			10
Thereafter	4			53
Total lease payments	58			104
Less: imputed interest	(8		)	(35		)
Total lease liability	$	50		$	69