Leases

3 Months Ended

Mar. 31, 2022

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 months ended March 31, 2022 and 2021 are as follows (in millions):

	Three Months Ended March 31,
Lease Cost	2022			2021
Operating lease cost:
Operating lease cost	$	51		$	48
Short-term rent expense		23			25
Variable lease cost		4			6
Sublease income		(1	)		(1	)
Total operating lease cost	$	77		$	78
Finance lease cost:
Amortization of right-of-use assets	$	3		$	3
Interest on finance lease liabilities		4			1
Total finance lease cost	$	7		$	4

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

	Balance Sheet Classification	March 31, 2022			December 31, 2021
Operating Leases:
Operating lease right-of-use assets	Other assets, net	$	715		$	668

Finance Leases:
Finance lease right-of-use assets	Property and equipment
	Land and improvements	$	8		$	8
	Buildings and improvements		316			289
	Equipment and fixtures		12			17
	Property and equipment		336			314
	Less accumulated depreciation and amortization		(56	)		(54	)
	Property and equipment, net	$	280		$	260

Current finance lease liabilities	Current maturities of long-term debt	$	3		$	8
Long-term finance lease liabilities	Long-term debt		258			233

Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 is as follows (in millions):

	Three Months Ended March 31,
Cash flow information	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases ⁽¹⁾	$	50	$	56
Operating cash flows from finance leases		4		1
Financing cash flows from finance leases		6		1
Right-of-use assets obtained in exchange for new finance lease liabilities		31		—
Right-of-use assets obtained in exchange for new operating lease liabilities		69		26

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