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Leases | 12 Months Ended
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Dec. 31, 2021
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 14 years, some of which include options to extend the leases for up to 10 years. As of December 31, 2021, the weighted average remaining operating lease term is 8 years. Our finance leases have remaining lease terms up to 17 years, some of which include options to extend the leases for up to 25 years. As of December 31, 2021, the weighted average remaining finance lease term is 14 years. As of December 31, 2021, the weighted-average discount rate used to compute the present value of lease payments was 4.3% for operating lease liabilities, and 6.4% for finance lease liabilities. The components of lease expense for the years ended December 31, 2021, and 2020, are presented in the following table.
|  |  | Year Ended December 31,
|  |  | 2021 |  | 2020
|  |  | (In millions)
Operating lease expense |  |  | $ | 34 |  |  | $ | 28 |
Finance lease expense: |  |  |  |  |
Amortization of ROU assets |  |  | $ | 25 |  |  | $ | 19 |
Interest on lease liabilities |  |  | 15 |  |  | 15 |
Total finance lease expense |  |  | $ | 40 |  |  | $ | 34 |
Supplemental consolidated cash flow information related to leases follows:
| Year Ended December 31,
| 2021 |  | 2020
| (In millions)
Cash used in operating activities: |  |  |
Operating leases | $ | 33 |  |  | $ | 30 |
Finance leases | 15 |  |  | 15 |
Cash used in financing activities: |  |  |
Finance leases | 18 |  |  | 9 |
ROU assets recognized in exchange for lease obligations: |  |  |
Operating leases | 86 |  |  | 28 |
Finance leases | $ | 18 |  |  | $ | 7 |
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
| December 31,
| 2021 |  | 2020
| (In millions)
Operating leases: |  |  |
ROU assets |  |  |
Other assets | $ | 128 |  |  | $ | 58 |
Other assets - Magellan Complete Care acquisition opening balance | — |  |  | 13 |
Total other assets | $ | 128 |  |  | $ | 71 |
Lease liabilities |  |  |
Accounts payable and accrued liabilities (current) | $ | 35 |  |  | $ | 21 |
Other long-term liabilities (non-current) | 99 |  |  | 42 |
Magellan Complete Care acquisition opening balance | — |  |  | 13 |
Total operating lease liabilities | $ | 134 |  |  | $ | 76 |
Finance leases: |  |  |
ROU assets |  |  |
Property, equipment, and capitalized software, net | $ | 206 |  |  | $ | 216 |
Lease liabilities |  |  |
Accounts payable and accrued liabilities (current) | $ | 15 |  |  | $ | 12 |
Finance lease liabilities (non-current) | 219 |  |  | 225 |
Total finance lease liabilities | $ | 234 |  |  | $ | 237 |
Maturities of lease liabilities as of December 31, 2021, were as follows:
| Operating |  | Finance
| Leases |  | Leases
| (In millions)
2022 | $ | 30 |  |  | $ | 29 |
2023 | 26 |  |  | 27 |
2024 | 20 |  |  | 24 |
2025 | 16 |  |  | 22 |
2026 | 10 |  |  | 23 |
Thereafter | 61 |  |  | 243 |
Subtotal - undiscounted lease payments | 163 |  |  | 368 |
Less imputed interest | (29) |  |  | (134) |
Total | $ | 134 |  |  | $ | 234 |
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 14 years, some of which include options to extend the leases for up to 10 years. As of December 31, 2021, the weighted average remaining operating lease term is 8 years. Our finance leases have remaining lease terms up to 17 years, some of which include options to extend the leases for up to 25 years. As of December 31, 2021, the weighted average remaining finance lease term is 14 years. As of December 31, 2021, the weighted-average discount rate used to compute the present value of lease payments was 4.3% for operating lease liabilities, and 6.4% for finance lease liabilities. The components of lease expense for the years ended December 31, 2021, and 2020, are presented in the following table.
|  |  | Year Ended December 31,
|  |  | 2021 |  | 2020
|  |  | (In millions)
Operating lease expense |  |  | $ | 34 |  |  | $ | 28 |
Finance lease expense: |  |  |  |  |
Amortization of ROU assets |  |  | $ | 25 |  |  | $ | 19 |
Interest on lease liabilities |  |  | 15 |  |  | 15 |
Total finance lease expense |  |  | $ | 40 |  |  | $ | 34 |
Supplemental consolidated cash flow information related to leases follows:
| Year Ended December 31,
| 2021 |  | 2020
| (In millions)
Cash used in operating activities: |  |  |
Operating leases | $ | 33 |  |  | $ | 30 |
Finance leases | 15 |  |  | 15 |
Cash used in financing activities: |  |  |
Finance leases | 18 |  |  | 9 |
ROU assets recognized in exchange for lease obligations: |  |  |
Operating leases | 86 |  |  | 28 |
Finance leases | $ | 18 |  |  | $ | 7 |
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
| December 31,
| 2021 |  | 2020
| (In millions)
Operating leases: |  |  |
ROU assets |  |  |
Other assets | $ | 128 |  |  | $ | 58 |
Other assets - Magellan Complete Care acquisition opening balance | — |  |  | 13 |
Total other assets | $ | 128 |  |  | $ | 71 |
Lease liabilities |  |  |
Accounts payable and accrued liabilities (current) | $ | 35 |  |  | $ | 21 |
Other long-term liabilities (non-current) | 99 |  |  | 42 |
Magellan Complete Care acquisition opening balance | — |  |  | 13 |
Total operating lease liabilities | $ | 134 |  |  | $ | 76 |
Finance leases: |  |  |
ROU assets |  |  |
Property, equipment, and capitalized software, net | $ | 206 |  |  | $ | 216 |
Lease liabilities |  |  |
Accounts payable and accrued liabilities (current) | $ | 15 |  |  | $ | 12 |
Finance lease liabilities (non-current) | 219 |  |  | 225 |
Total finance lease liabilities | $ | 234 |  |  | $ | 237 |
Maturities of lease liabilities as of December 31, 2021, were as follows:
| Operating |  | Finance
| Leases |  | Leases
| (In millions)
2022 | $ | 30 |  |  | $ | 29 |
2023 | 26 |  |  | 27 |
2024 | 20 |  |  | 24 |
2025 | 16 |  |  | 22 |
2026 | 10 |  |  | 23 |
Thereafter | 61 |  |  | 243 |
Subtotal - undiscounted lease payments | 163 |  |  | 368 |
Less imputed interest | (29) |  |  | (134) |
Total | $ | 134 |  |  | $ | 234 |

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- 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
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- 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
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