Leases (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 2020 and 2019:


In millions	2021		2020		2019
Operating lease cost	$	2,633	$	2,670	$	2,720
Finance lease cost:
Amortization of right-of-use assets	62		56		38
Interest on lease liabilities	62		58		44
Total finance lease costs	124		114		82
Short-term lease costs	25		22		24
Variable lease costs	604		599		581
Less: sublease income	59		55		50
Net lease cost	$	3,327	$	3,350	$	3,357

Supplemental cash flow information related to leases for the years ended December 31, 2021, 2020 and 2019 is as follows:


In millions	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,714	$	2,724	$	2,701
Operating cash flows paid for interest portion of finance leases	62		58		44
Financing cash flows paid for principal portion of finance leases	50		34		26
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,254		1,679		1,824
Finance leases	278		313		283

Supplemental balance sheet information

Supplemental balance sheet information related to leases as of December 31, 2021 and 2020 is as follows:


In millions, except remaining lease term and discount rate	2021			2020
Operating leases:
Operating lease right-of-use assets	$	19,122		$	20,729

Current portion of operating lease liabilities	$	1,646		$	1,638
Long-term operating lease liabilities	18,177			18,757
Total operating lease liabilities	$	19,823		$	20,395

Finance leases:
Property and equipment, gross	$	1,375		$	1,107
Accumulated depreciation	(188)			(106)
Property and equipment, net	$	1,187		$	1,001

Current portion of long-term debt	$	50		$	33
Long-term debt	1,250			1,050
Total finance lease liabilities	$	1,300		$	1,083

Weighted average remaining lease term (in years)
Operating leases	12.8			13.3
Finance leases	20.0			20.3

Weighted average discount rate
Operating leases	4.4		%	4.5		%
Finance leases	5.0		%	5.6		%

Maturities of operating lease liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2021:


In millions	Finance Leases		Operating Leases (1)		Total
2022	$	122	$	2,685	$	2,807
2023	121		2,613		2,734
2024	111		2,398		2,509
2025	110		2,217		2,327
2026	109		2,054		2,163
Thereafter	1,495		14,103		15,598
Total lease payments (2)	2,068		26,070		28,138
Less: imputed interest	(768)		(6,247)		(7,015)
Total lease liabilities	$	1,300	$	19,823	$	21,123

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $311 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 $2.4 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, 2021:


In millions	Finance Leases		Operating Leases (1)		Total
2022	$	122	$	2,685	$	2,807
2023	121		2,613		2,734
2024	111		2,398		2,509
2025	110		2,217		2,327
2026	109		2,054		2,163
Thereafter	1,495		14,103		15,598
Total lease payments (2)	2,068		26,070		28,138
Less: imputed interest	(768)		(6,247)		(7,015)
Total lease liabilities	$	1,300	$	19,823	$	21,123

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $311 million due in the future under noncancelable subleases.