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Leases (Tables)
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
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)
 
January 1, 2019
(initial recognition)
Current liabilities:
 
 
Operating leases
 
$
14

Finance leases
 
2

Long-term liabilities:
 
 
Operating leases
 
40

Finance leases
 
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 June 30, 2019:
(in millions)
June 30, 2019
Operating Leases:
 
ROU assets, net
 
Pipeline and storage
$
24

Railcars
13

Real estate and other
10

Lease liability
 
Pipelines and storage
$
25

Railcars
13

Real estate and other
8

(in millions)
June 30, 2019
Financing Leases:
 
ROU assets, net
 
Pipeline and storage
$
31

Real estate and other
26

Lease liability
 
Pipelines and storage
$
42

Real estate and other
26
Lease expense, lease terms, and discount rates
The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and liabilities:
 
June 30, 2019
 
January 1, 2019
(initial recognition)
Weighted-average remaining lease term (years)
 
 
 
Operating Leases
4.2

 
4.4

Finance Leases
10.1

 
10.3

Weighted-average discount rate
 
 
 
Operating Leases
5.9
%
 
5.8
%
Finance Leases
9.6
%
 
9.8
%


For the three and six months ended June 30, 2019, we recognized net lease expense comprised of the following components:
(in millions)
Three Months Ended
June 30, 2019
 
Six Months Ended
June 30, 2019
Operating lease expense
$
4

 
$
8

Financing lease expense:
 
 
 
Amortization of ROU
$
1

 
$
3

Interest expense on lease liability
1

 
3
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 June 30, 2019:
(in millions)
Operating Leases
 
Financing
Leases
Remainder of 2019
$
8

 
$
5

2020
14

 
11

2021
12

 
11

2022
9

 
11

2023
6

 
10

Thereafter
4

 
53

Total lease payments
53

 
101

Less: imputed interest
(7
)
 
(33
)
Total lease liability
$
46

 
$
68
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 June 30, 2019:
(in millions)
Operating Leases
 
Financing
Leases
Remainder of 2019
$
8

 
$
5

2020
14

 
11

2021
12

 
11

2022
9

 
11

2023
6

 
10

Thereafter
4

 
53

Total lease payments
53

 
101

Less: imputed interest
(7
)
 
(33
)
Total lease liability
$
46

 
$
68