XML 38 R22.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Leases | Leases As discussed in Note 2, “Significant Accounting Policies,” we elected the Topic 842 transition provision that allows entities to continue to apply the legacy guidance in Topic 840, Leases, including its disclosure requirements, in the comparative periods presented in the year of adoption. Accordingly, the Topic 842 disclosures below are presented as of and for the three-month and nine-month periods ended September 30, 2019, only. We are a party to operating and finance leases primarily for our corporate and health plan offices. Our operating leases have remaining lease terms up to 10 years, some of which include options to extend the leases for up to 10 years. As of September 30, 2019, the weighted average remaining operating lease term is 4 years. Our finance leases have remaining lease terms of 2 years to 19 years, some of which include options to extend the leases for up to 25 years. As of September 30, 2019, the weighted average remaining finance lease term is 16 years. As of September 30, 2019, the weighted-average discount rate used to compute the present value of lease payments was 5.6% for operating lease liabilities, and 6.5% for finance lease liabilities. The components of lease expense were as follows:
| Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
| (In millions)
Operating lease expense | $ | 9 |  |  | $ | 26 |
Finance lease expense: |  |  |
Amortization of right-of-use (“ROU”) assets | $ | 4 |  |  | $ | 12 |
Interest on lease liabilities | 3 |  |  | 11 |
Total finance lease expense | $ | 7 |  |  | $ | 23 |
Supplemental consolidated cash flow information related to leases follows:
| Nine Months Ended September 30, 2019
| (In millions)
Cash used in operating activities: |
Operating leases | $ | 28 |
Finance leases | 12 |
Cash used in financing activities: |
Finance leases | 4 |
ROU assets recognized in exchange for lease obligations: |
Operating leases | 95 |
Finance leases | 245 |
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
| September 30, 2019
| (In millions)
Operating leases: |
ROU assets |
Other assets | $ | 69 |
Lease liabilities |
Accounts payable and accrued liabilities (current) | $ | 28 |
Other long-term liabilities (non-current) | 49 |
Total operating lease liabilities | $ | 77 |
Finance leases: |
ROU assets |
Property, equipment, and capitalized software, net | $ | 233 |
Lease liabilities |
Accounts payable and accrued liabilities (current) | $ | 8 |
Finance lease liabilities (non-current) | 233 |
Total finance lease liabilities | $ | 241 |
Maturities of lease liabilities as of September 30, 2019, were as follows:
| Operating Leases |  | Finance Leases
| (In millions)
2019 (for the three months ended December 31, 2019) | $ | 9 |  |  | $ | 6 |
2020 | 28 |  |  | 23 |
2021 | 18 |  |  | 23 |
2022 | 12 |  |  | 22 |
2023 | 10 |  |  | 21 |
Thereafter | 8 |  |  | 311 |
Total lease payments | 85 |  |  | 406 |
Less imputed interest | (8 | ) |  | (165 | )
Totals | $ | 77 |  |  | $ | 241 |
Leases | Leases As discussed in Note 2, “Significant Accounting Policies,” we elected the Topic 842 transition provision that allows entities to continue to apply the legacy guidance in Topic 840, Leases, including its disclosure requirements, in the comparative periods presented in the year of adoption. Accordingly, the Topic 842 disclosures below are presented as of and for the three-month and nine-month periods ended September 30, 2019, only. We are a party to operating and finance leases primarily for our corporate and health plan offices. Our operating leases have remaining lease terms up to 10 years, some of which include options to extend the leases for up to 10 years. As of September 30, 2019, the weighted average remaining operating lease term is 4 years. Our finance leases have remaining lease terms of 2 years to 19 years, some of which include options to extend the leases for up to 25 years. As of September 30, 2019, the weighted average remaining finance lease term is 16 years. As of September 30, 2019, the weighted-average discount rate used to compute the present value of lease payments was 5.6% for operating lease liabilities, and 6.5% for finance lease liabilities. The components of lease expense were as follows:
| Three Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2019
| (In millions)
Operating lease expense | $ | 9 |  |  | $ | 26 |
Finance lease expense: |  |  |
Amortization of right-of-use (“ROU”) assets | $ | 4 |  |  | $ | 12 |
Interest on lease liabilities | 3 |  |  | 11 |
Total finance lease expense | $ | 7 |  |  | $ | 23 |
Supplemental consolidated cash flow information related to leases follows:
| Nine Months Ended September 30, 2019
| (In millions)
Cash used in operating activities: |
Operating leases | $ | 28 |
Finance leases | 12 |
Cash used in financing activities: |
Finance leases | 4 |
ROU assets recognized in exchange for lease obligations: |
Operating leases | 95 |
Finance leases | 245 |
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
| September 30, 2019
| (In millions)
Operating leases: |
ROU assets |
Other assets | $ | 69 |
Lease liabilities |
Accounts payable and accrued liabilities (current) | $ | 28 |
Other long-term liabilities (non-current) | 49 |
Total operating lease liabilities | $ | 77 |
Finance leases: |
ROU assets |
Property, equipment, and capitalized software, net | $ | 233 |
Lease liabilities |
Accounts payable and accrued liabilities (current) | $ | 8 |
Finance lease liabilities (non-current) | 233 |
Total finance lease liabilities | $ | 241 |
Maturities of lease liabilities as of September 30, 2019, were as follows:
| Operating Leases |  | Finance Leases
| (In millions)
2019 (for the three months ended December 31, 2019) | $ | 9 |  |  | $ | 6 |
2020 | 28 |  |  | 23 |
2021 | 18 |  |  | 23 |
2022 | 12 |  |  | 22 |
2023 | 10 |  |  | 21 |
Thereafter | 8 |  |  | 311 |
Total lease payments | 85 |  |  | 406 |
Less imputed interest | (8 | ) |  | (165 | )
Totals | $ | 77 |  |  | $ | 241 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration