|6 Months Ended|
Jun. 30, 2022
The following table sets forth the ROU assets and lease liabilities ($ in millions):
As part of the real estate optimization initiative as described in Note 5. Property, Software and Equipment, the Company vacated and abandoned various domestic leased properties. As a result, the Company assessed the ROU assets for impairment. The Company engaged a third-party real estate specialist to determine the recoverability of the leased properties. The valuation primarily considered comparable leased properties in each market and the assessment of potential future rental income that could be generated by the ROU assets. As a result of the Company’s impairment analysis, the Company recognized $521 million of ROU asset impairments in the second quarter of 2022, primarily related to the Managed Care segment. The remainder of the $1,450 million charge was recorded within Property, Software and Equipment, refer to Note 5. Property, Software and Equipment.
As of June 30, 2022, the weighted average remaining lease term for the Company was 20.1 years. The lease liabilities as of June 30, 2022 reflect a weighted average discount rate of 5.7%.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef