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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
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 8 years, some of which include options to extend the leases for up to 10 years. As of December 31, 2020, the weighted average remaining operating lease term is 4 years.
Our finance leases have remaining lease terms of 1 year to 18 years, some of which include options to extend the leases for up to 25 years. As of December 31, 2020, the weighted average remaining finance lease term is 15 years.
As of December 31, 2020, the weighted-average discount rate used to compute the present value of lease payments was 5.2% for operating lease liabilities, and 6.5% for finance lease liabilities. The components of lease expense for the years ended December 31, 2020, and 2019, are presented in the following table. Rental expense related to operating leases amounted to $62 million for the year ended December 31, 2018.
Year Ended December 31,
20202019
(In millions)
Operating lease expense$28 $34 
Finance lease expense:
Amortization of ROU assets$19 $17 
Interest on lease liabilities15 15 
Total finance lease expense$34 $32 
Supplemental consolidated cash flow information related to leases follows:
Year Ended December 31,
20202019
(In millions)
Cash used in operating activities:
Operating leases$30 $36 
Finance leases15 15 
Cash used in financing activities:
Finance leases9 6 
ROU assets recognized in exchange for lease obligations:
Operating leases28 99 
Finance leases$7 $245 
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
December 31,
20202019
(In millions)
Operating leases:
ROU assets
Other assets$58 $65 
Other assets - Magellan Complete Care13 — 
Total other assets$71 $65 
Lease liabilities
Accounts payable and accrued liabilities (current)$21 $25 
Other long-term liabilities (non-current)42 48 
Magellan Complete Care 13 — 
Total operating lease liabilities$76 $73 
Finance leases:
ROU assets
Property, equipment, and capitalized software, net$216 $228 
Lease liabilities
Accounts payable and accrued liabilities (current)$12 $8 
Finance lease liabilities (non-current)225 231 
Total finance lease liabilities
$237 $239 
Maturities of lease liabilities as of December 31, 2020, were as follows:
Operating Finance
LeasesLeases
(In millions)
2021$29 $26 
202220 24 
202316 22 
202410 22 
20256 23 
Thereafter3 266 
Subtotal - undiscounted lease payments84 383 
Less imputed interest(8)(146)
Total$76 $237 
Leases Leases
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 8 years, some of which include options to extend the leases for up to 10 years. As of December 31, 2020, the weighted average remaining operating lease term is 4 years.
Our finance leases have remaining lease terms of 1 year to 18 years, some of which include options to extend the leases for up to 25 years. As of December 31, 2020, the weighted average remaining finance lease term is 15 years.
As of December 31, 2020, the weighted-average discount rate used to compute the present value of lease payments was 5.2% for operating lease liabilities, and 6.5% for finance lease liabilities. The components of lease expense for the years ended December 31, 2020, and 2019, are presented in the following table. Rental expense related to operating leases amounted to $62 million for the year ended December 31, 2018.
Year Ended December 31,
20202019
(In millions)
Operating lease expense$28 $34 
Finance lease expense:
Amortization of ROU assets$19 $17 
Interest on lease liabilities15 15 
Total finance lease expense$34 $32 
Supplemental consolidated cash flow information related to leases follows:
Year Ended December 31,
20202019
(In millions)
Cash used in operating activities:
Operating leases$30 $36 
Finance leases15 15 
Cash used in financing activities:
Finance leases9 6 
ROU assets recognized in exchange for lease obligations:
Operating leases28 99 
Finance leases$7 $245 
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
December 31,
20202019
(In millions)
Operating leases:
ROU assets
Other assets$58 $65 
Other assets - Magellan Complete Care13 — 
Total other assets$71 $65 
Lease liabilities
Accounts payable and accrued liabilities (current)$21 $25 
Other long-term liabilities (non-current)42 48 
Magellan Complete Care 13 — 
Total operating lease liabilities$76 $73 
Finance leases:
ROU assets
Property, equipment, and capitalized software, net$216 $228 
Lease liabilities
Accounts payable and accrued liabilities (current)$12 $8 
Finance lease liabilities (non-current)225 231 
Total finance lease liabilities
$237 $239 
Maturities of lease liabilities as of December 31, 2020, were as follows:
Operating Finance
LeasesLeases
(In millions)
2021$29 $26 
202220 24 
202316 22 
202410 22 
20256 23 
Thereafter3 266 
Subtotal - undiscounted lease payments84 383 
Less imputed interest(8)(146)
Total$76 $237