|6 Months Ended|
Jun. 30, 2021
The Company records right of use (ROU) assets and lease liabilities for non-cancelable operating leases primarily for real estate and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Expense related to leases is recorded on a straight-line basis over the lease term, including rent holidays. The Company recognized operating lease expense of $68 million and $72 million for the three months ended June 30, 2021 and 2020, respectively, and $134 million and $134 million for the six months ended June 30, 2021 and 2020, respectively.
The following table sets forth the ROU assets and lease liabilities ($ in millions):
During the three and six months ended June 30, 2021, the Company reduced its lease liabilities by $71 million and $138 million, respectively, for cash paid. In addition, during the three and six months ended June 30, 2021, new operating leases commenced resulting in the recognition of ROU assets and lease liabilities of $12 million and $108 million, respectively. As of June 30, 2021, the Company had additional operating leases that have not yet commenced of $57 million. These operating leases will commence in 2021 and 2022 with lease terms ranging from to years.
As of June 30, 2021, the weighted average remaining lease term of the Company’s operating leases was 9.4 years. The lease liabilities as of June 30, 2021 reflect a weighted average discount rate of 3.3%. Lease payments over the next five years and thereafter are as follows ($ in millions):
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef