Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The following table sets forth the ROU assets and lease liabilities ($ in millions):
  June 30, 2022 December 31, 2021
Assets
ROU assets (recorded within other long-term assets) $ 2,720  $ 3,566 
Liabilities
Short-term (recorded within accounts payable and accrued expenses) $ 204  $ 204 
Long-term (recorded within other long-term liabilities) 3,268  3,619 
Total lease liabilities $ 3,472  $ 3,823 

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%.