Leases

6 Months Ended

Jun. 30, 2021

8. LEASES

The Company utilizes operating and finance leases for the use of certain hospitals, medical office buildings, and medical equipment. The components of lease cost and rent expense for the three and six month periods ended June 30, 2021 and 2020 are as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
Lease Cost	2021			2020			2021			2020
Operating lease cost:
Operating lease cost	$	50		$	51		$	99		$	101
Short-term rent expense		23			27			47			54
Variable lease cost		6			6			12			11
Sublease income		(1	)		(2	)		(2	)		(3	)
Total operating lease cost	$	78		$	82		$	156		$	163
Finance lease cost:
Amortization of right-of-use assets	$	1		$	3		$	4		$	6
Interest on finance lease liabilities		2			2			3			4
Total finance lease cost	$	3		$	5		$	7		$	10

Supplemental balance sheet information related to leases was as follows (in millions):

	Balance Sheet Classification	June 30, 2021			December 31, 2020
Operating Leases:
Operating Lease ROU Assets	Other assets, net	$	635		$	642

Finance Leases:
Finance Lease ROU Assets	Property and equipment
	Land and improvements	$	8		$	8
	Buildings and improvements		143			134
	Equipment and fixtures		13			8
	Property and equipment		164			150
	Less accumulated depreciation and amortization		(49	)		(46	)
	Property and equipment, net	$	115		$	104

Current finance lease liabilities	Current maturities of long-term debt	$	9		$	5
Long-term finance lease liabilities	Long-term debt		82			74

Supplemental cash flow information related to leases for the six months ended June 30, 2021 and 2020 is as follows (in millions):

	Six Months Ended June 30,
Cash flow information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases ⁽¹⁾	$	102	$	95
Operating cash flows from finance leases		3		4
Financing cash flows from finance leases		3		4
Right-of-use assets obtained in exchange for new finance lease liabilities		15		21
Right-of-use assets obtained in exchange for new operating lease liabilities		36		73

(1)	Included in the change in other operating assets and liabilities in the condensed consolidated statement of cash flows.