|3 Months Ended|
Mar. 31, 2020
The Company records right of use (ROU) assets and 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. During the three months ended March 31, 2020, the Company recognized operating lease expense of $62 million.
The following table sets forth the ROU assets and liabilities as of March 31, 2020 ($ in millions):
During the three months ended March 31, 2020, the Company reduced its ROU liabilities by $63 million, for cash paid. The Company did not have any new operating leases commence during the three months ended March 31, 2020, that resulted in the recognition of ROU assets and liabilities. As of March 31, 2020, the Company had additional operating leases that have not yet commenced of $421 million, which included four significant leases executed during the first quarter. These operating leases will commence in 2020 with lease terms of 2 years to 16 years. In connection with the WellCare Acquisition, we acquired approximately $240 million and $260 million of ROU assets and liabilities, respectively.
As of March 31, 2020, the weighted average remaining lease term of the Company's operating leases was 6.8 years. The ROU liabilities as of March 31, 2020 reflect a weighted average discount rate of 4.7%. Lease payments over the next five years and thereafter are as follows ($ 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