Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease costs and supplemental cash flow information

The following table is a summary of the components of net lease cost for the years ended December 31, 2020 and 2019:

In millions	2020		2019
Operating lease cost	$	2,670	$	2,720
Finance lease cost:
Amortization of right-of-use assets	56		38
Interest on lease liabilities	58		44
Total finance lease costs	114		82
Short-term lease costs	22		24
Variable lease costs	599		581
Less: sublease income	55		50
Net lease cost	$	3,350	$	3,357

Supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 is as follows:

In millions	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,724	$	2,701
Operating cash flows paid for interest portion of finance leases	58		44
Financing cash flows paid for principal portion of finance leases	34		26
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,679		1,824
Finance leases	313		283

Supplemental balance sheet information

Supplemental balance sheet information related to leases as of December 31, 2020 and 2019 is as follows:

In millions, except remaining lease term and discount rate	2020			2019
Operating leases:
Operating lease right-of-use assets	$	20,729		$	20,860
Current portion of operating lease liabilities	$	1,638		$	1,596
Long-term operating lease liabilities	18,757			18,926
Total operating lease liabilities	$	20,395		$	20,522
Finance leases:
Property and equipment, gross	$	1,107		$	790
Accumulated depreciation	(106)			(38)
Property and equipment, net	$	1,001		$	752
Current portion of long-term debt	$	33		$	27
Long-term debt	1,050			781
Total finance lease liabilities	$	1,083		$	808
Weighted average remaining lease term (in years)
Operating leases	13.3			13.8
Finance leases	20.3			20.5
Weighted average discount rate
Operating leases	4.5		%	4.6		%
Finance leases	5.6		%	6.7		%

Maturities of operating lease liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2020:

In millions	Finance Leases		Operating Leases (1)		Total
2021	$	100	$	2,688	$	2,788
2022	98		2,583		2,681
2023	96		2,496		2,592
2024	95		2,269		2,364
2025	95		2,089		2,184
Thereafter	1,328		15,017		16,345
Total lease payments (2)	1,812		27,142		28,954
Less: imputed interest	(729)		(6,747)		(7,476)
Total lease liabilities	$	1,083	$	20,395	$	21,478

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $306 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 December 31, 2020:

In millions	Finance Leases		Operating Leases (1)		Total
2021	$	100	$	2,688	$	2,788
2022	98		2,583		2,681
2023	96		2,496		2,592
2024	95		2,269		2,364
2025	95		2,089		2,184
Thereafter	1,328		15,017		16,345
Total lease payments (2)	1,812		27,142		28,954
Less: imputed interest	(729)		(6,747)		(7,476)
Total lease liabilities	$	1,083	$	20,395	$	21,478

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $306 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.

Lessee, Operating Lease, Disclosure

The following table is a summary of the Company’s net rental expense for operating leases for the year ended December 31, 2018:

In millions	2018
Minimum rentals	$	2,528
Contingent rentals	28
Rental expense	2,556
Less: sublease income	(21)
Total rental expense, net	$	2,535