Quarterly report pursuant to Section 13 or 15(d)

Property, Software and Equipment

v3.22.2
Property, Software and Equipment
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure Property, Software and Equipment
Property, software and equipment consist of the following ($ in millions):
  June 30, 2022 December 31, 2021
Computer software $ 2,095  $ 1,825 
Building 663  1,116 
Furniture and office equipment 550  753 
Leasehold improvements 468  732 
Computer hardware 642  617 
Land 192  248 
Property, software and equipment, at cost 4,610  5,291 
Less: accumulated depreciation (2,053) (1,900)
Property, software and equipment, net $ 2,557  $ 3,391 
During the second quarter of 2022, in connection with the adoption of a more modern, flexible work environment, the Company undertook a real estate optimization initiative to evaluate future real estate needs and downsize its real estate footprint for owned and leased properties. As a result of this evaluation, during the second quarter of 2022, the Company substantially changed the use or abandoned various properties and assessed for impairment. The Company engaged a third-party real estate specialist to determine the fair value of its owned properties. The valuation primarily considered comparable properties in each market as well as future cash flows. As a result of the impairment analysis, the Company recognized a $706 million charge related to the impairment of owned real estate and related fixed assets, and $223 million associated with the impairment of fixed assets related to leased real estate. These impairments are primarily related to the Managed Care segment. The remainder of the $1,450 million charge relates to right-of-use (ROU) asset impairments, which is included within Other Long-term assets on the balance sheet, refer to Note 9. Leases.