Quarterly report pursuant to Section 13 or 15(d)

Property, Software and Equipment

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Property, Software and Equipment
9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Software and Equipment Property, Software and Equipment
Property, software and equipment consist of the following ($ in millions):
  September 30, 2022 December 31, 2021
Computer software $ 2,211  $ 1,825 
Building 641  1,116 
Furniture and office equipment 407  753 
Leasehold improvements 454  732 
Computer hardware 648  617 
Land 178  248 
Property, software and equipment, at cost 4,539  5,291 
Less: accumulated depreciation (2,060) (1,900)
Property, software and equipment, net $ 2,479  $ 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 optimization, the Company has recognized impairment charges related to owned real estate of $57 million and $763 million for the three and nine months ended September 30, 2022, respectively. The Company also recognized impairment on fixed assets related to leased real estate of $14 million and $237 million for the three and nine months ended September 30, 2022, respectively. These impairments are primarily related to the Managed Care segment. The remainder of the $1,574 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.