Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Summary of the Components of Net Lease Cost and Supplemental Cash Flow Information

The following table is a summary of the components of net lease cost for the years ended December 31, 2023, 2022 and 2021:

In millions	2023		2022		2021
Operating lease cost	$	2,532	$	2,579	$	2,633
Finance lease cost:
Amortization of right-of-use assets	84		79		62
Interest on lease liabilities	73		68		62
Total finance lease costs	157		147		124
Short-term lease costs	22		27		25
Variable lease costs	635		610		604
Less: sublease income	(63)		(61)		(59)
Net lease cost	$	3,283	$	3,302	$	3,327

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as follows:

In millions	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,756	$	2,689	$	2,714
Operating cash flows paid for interest portion of finance leases	73		68		62
Financing cash flows paid for principal portion of finance leases	70		62		50
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,132		591		1,254
Finance leases	(4)		232		278

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows:

In millions, except remaining lease term and discount rate	2023			2022
Operating leases:
Operating lease right-of-use assets (1)	$	17,252		$	17,928
Current portion of operating lease liabilities	$	1,741		$	1,699
Long-term operating lease liabilities	16,034			16,839
Total operating lease liabilities (2)	$	17,775		$	18,538
Finance leases:
Property and equipment, gross	$	1,604		$	1,608
Accumulated depreciation	(375)			(284)
Property and equipment, net	$	1,229		$	1,324
Current portion of long-term debt	$	66		$	59
Long-term debt	1,325			1,406
Total finance lease liabilities	$	1,391		$	1,465
Weighted average remaining lease term (in years)
Operating leases	11.4			12.2
Finance leases	17.3			19.4
Weighted average discount rate
Operating leases	4.5		%	4.4		%
Finance leases	5.0		%	4.9		%

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(1)Includes operating lease right-of-use assets of $56 million which were accounted for as assets held for sale and were included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

(2)Includes current portion of operating lease liabilities of $21 million and long-term operating lease liabilities of $39 million which were accounted for as liabilities held for sale and were included in liabilities held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

Maturities of Operating Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2023:

In millions	Finance Leases		Operating Leases (1)		Total
2024	$	143	$	2,716	$	2,859
2025	138		2,559		2,697
2026	130		2,369		2,499
2027	127		2,181		2,308
2028	124		2,024		2,148
Thereafter	1,446		11,004		12,450
Total lease payments (2)	2,108		22,853		24,961
Less: imputed interest	(717)		(5,078)		(5,795)
Total lease liabilities	$	1,391	$	17,775	$	19,166

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(1)Future operating lease payments have not been reduced by minimum sublease rentals of $289 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 $2.1 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 Finance Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2023:

In millions	Finance Leases		Operating Leases (1)		Total
2024	$	143	$	2,716	$	2,859
2025	138		2,559		2,697
2026	130		2,369		2,499
2027	127		2,181		2,308
2028	124		2,024		2,148
Thereafter	1,446		11,004		12,450
Total lease payments (2)	2,108		22,853		24,961
Less: imputed interest	(717)		(5,078)		(5,795)
Total lease liabilities	$	1,391	$	17,775	$	19,166

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(1)Future operating lease payments have not been reduced by minimum sublease rentals of $289 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 $2.1 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.