Leases (Tables)

6 Months Ended

Jun. 30, 2019

Lease Costs and Supplemental Cash Flow Information

The following table is a summary of the Company’s components of net lease cost for the three and six months ended June 30, 2019:



In millions	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	681	$	1,363
Finance lease cost:
Amortization of right-of-use assets	9		18
Interest on lease liabilities	11		21
Total finance lease costs	20		39
Short-term lease costs	6		12
Variable lease costs	144		286
Less: sublease income	10		22
Net lease cost	$	841	$	1,678

Supplemental cash flow information related to leases for the six months ended June 30, 2019 is as follows:



In millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	1,348
Operating cash flows paid for interest portion of finance leases	21
Financing cash flows paid for principal portion of finance leases	13
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	868
Finance leases	43

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases as of June 30, 2019 is as follows:



In millions, except lease term and discount rate
Operating leases:
Operating lease right-of-use assets	$	20,865

Current portion of operating lease liabilities	$	1,793
Long-term operating lease liabilities	18,849
Total operating lease liabilities	$	20,642

Finance leases:⁽¹⁾
Property and equipment, net	$	531

Current portion of long-term debt	$	26
Long-term debt	559
Total finance lease liabilities	$	585

Weighted average remaining lease term
Operating leases	14.0
Finance leases	20.3

Weighted average discount rate
Operating leases	4.7		%
Finance leases	7.4		%

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(1)	Finance lease right-of-use assets are included within property and equipment, net and the respective finance lease liabilities are included in the current portion of long-term debt and long-term debt lines on the unaudited condensed consolidated balance sheets.

Maturities of Operating Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of June 30, 2019:



	Finance			Operating
In millions	Leases			Leases ⁽¹⁾			Total
2019 (remaining six months)	$	34		$	1,356		$	1,390
2020	68			2,645			2,713
2021	65			2,516			2,581
2022	61			2,356			2,417
2023	59			2,244			2,303
Thereafter	825			16,857			17,682
Total lease payments ⁽²⁾	1,112			27,974			29,086
Less: imputed interest	(527		)	(7,332		)	(7,859		)
Total lease liabilities	$	585		$	20,642		$	21,227

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(1)	Future operating lease payments have not been reduced by minimum sublease rentals of $327 million due in the future under noncancelable subleases.

(2)

The Company leases pharmacy and clinic space from Target Corporation. Amounts related to such finance and operating leases are reflected above. Pharmacy lease amounts due in excess of the remaining estimated economic life of the buildings of approximately $2.2 billion are not reflected herein since the estimated economic life of the buildings is shorter than the contractual term of the pharmacy lease arrangement.

Maturities of Financing Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of June 30, 2019:



	Finance			Operating
In millions	Leases			Leases ⁽¹⁾			Total
2019 (remaining six months)	$	34		$	1,356		$	1,390
2020	68			2,645			2,713
2021	65			2,516			2,581
2022	61			2,356			2,417
2023	59			2,244			2,303
Thereafter	825			16,857			17,682
Total lease payments ⁽²⁾	1,112			27,974			29,086
Less: imputed interest	(527		)	(7,332		)	(7,859		)
Total lease liabilities	$	585		$	20,642		$	21,227