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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