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Leases (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2019:



In millions	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost	$	681	$	2,044
Finance lease cost:
Amortization of right-of-use assets	9		27
Interest on lease liabilities	11		32
Total finance lease costs	20		59
Short-term lease costs	5		17
Variable lease costs	148		434
Less: sublease income	13		35
Net lease cost	$	841	$	2,519

Supplemental cash flow information related to leases for the nine months ended September 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	$	2,023
Operating cash flows paid for interest portion of finance leases	32
Financing cash flows paid for principal portion of finance leases	19
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,203
Finance leases	82

Supplemental Balance Sheet Information

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



In millions, except lease term and discount rate
Operating leases:
Operating lease right-of-use assets	$	20,757

Current portion of operating lease liabilities	$	1,798
Long-term operating lease liabilities	18,826
Total operating lease liabilities	$	20,624

Finance leases:⁽¹⁾
Property and equipment, net	$	560

Current portion of long-term debt	$	27
Long-term debt	591
Total finance lease liabilities	$	618

Weighted average remaining lease term
Operating leases	13.8
Finance leases	20.6

Weighted average discount rate
Operating leases	4.6		%
Finance leases	7.3		%

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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 current portion of long-term debt and long-term debt 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 September 30, 2019:



In millions	Finance Leases			Operating Leases ⁽¹⁾			Total
2019 (remaining three months)	$	18		$	679		$	697
2020	70			2,688			2,758
2021	68			2,567			2,635
2022	64			2,408			2,472
2023	62			2,297			2,359
Thereafter	883			17,165			18,048
Total lease payments ⁽²⁾	1,165			27,804			28,969
Less: imputed interest	(547		)	(7,180		)	(7,727		)
Total lease liabilities	$	618		$	20,624		$	21,242

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(1)	Future operating lease payments have not been reduced by minimum sublease rentals of $320 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 $2.3 billion are not reflected in this table 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 September 30, 2019:



In millions	Finance Leases			Operating Leases ⁽¹⁾			Total
2019 (remaining three months)	$	18		$	679		$	697
2020	70			2,688			2,758
2021	68			2,567			2,635
2022	64			2,408			2,472
2023	62			2,297			2,359
Thereafter	883			17,165			18,048
Total lease payments ⁽²⁾	1,165			27,804			28,969
Less: imputed interest	(547		)	(7,180		)	(7,727		)
Total lease liabilities	$	618		$	20,624		$	21,242

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(1)	Future operating lease payments have not been reduced by minimum sublease rentals of $320 million due in the future under noncancelable subleases.

(2)