10. LEASES

The Company leases hospitals, medical office buildings, and certain equipment under capital and operating lease agreements. During 2018, 2017 and 2016, the Company entered into capital lease obligations of $6 million, $31 million and $179 million, respectively. All lease agreements generally require the Company to pay maintenance, repairs, property taxes and insurance costs.

Commitments relating to noncancellable operating and capital leases and financing obligations for each of the next five years and thereafter are as follows (in millions):


					Financing
Year Ending December 31,	Operating (1)		Capital		Obligations
2019	$	188	$	12	$	12
2020		157		10		9
2021		121		8		10
2022		98		7		10
2023		79		14		10
Thereafter		234		121		106
Total minimum future payments	$	877		172		157
Less: Imputed interest				(80)		(18)
Total capital lease and financing obligations				92		139
Less: Current portion				(8)		(5)
Long-term capital lease and financing obligations			$	84	$	134

(1)Minimum lease payments have not been reduced by minimum sublease rentals due in the future, which are considered immaterial.

On December 22, 2016, the Company completed the sale and leaseback of ten medical office buildings for net proceeds of $159 million to HCP, Inc. The buildings, with a combined total of 756,183 square feet, are located in five states and support a wide array of diagnostic, medical and surgical services in an outpatient setting for the respective nearby hospitals. Because of the Company’s continuing involvement in these leased buildings, the transaction does not qualify for sale treatment and the related leases have been recorded as financing obligations in the Company’s consolidated balance sheet at December 31, 2018 and 2017.

Assets capitalized under capital leases and financing obligations as reflected in the accompanying consolidated balance sheets were $53 million of land and improvements, $552 million of buildings and improvements and $16 million of equipment and fixtures as of December 31, 2018 and $63 million of land and improvements, $774 million of buildings and improvements and $28 million of equipment and fixtures as of December 31, 2017. The accumulated depreciation related to assets under capital leases and financing obligations was $193 million and $218 million as of December 31, 2018 and 2017, respectively. Depreciation of assets under capital leases and financing obligations is included in depreciation and amortization expense and amortization of debt discounts on capital lease and financing obligations is included in interest expense in the accompanying consolidated statements of loss.