Leases
We are a party to operating and finance leases primarily for our corporate and health plan offices. Our operating leases have remaining lease terms up to 21 years, some of which include options to extend the leases for up to 10 years. As of December 31, 2025, the weighted average remaining operating lease term is 8 years.
Our finance leases have remaining lease terms up to 13 years, some of which include options to extend the leases for up to 25 years. As of December 31, 2025, the weighted average remaining finance lease term is 10 years.
As of December 31, 2025, the weighted-average discount rate used to compute the present value of lease payments was 5.2% for operating lease liabilities, and 6.5% for finance lease liabilities. The components of lease expense for the years ended December 31, 2025, 2024, and 2023 are presented in the following table.
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (In millions) |
| Operating lease expense | $ | 12 | | | $ | 14 | | | $ | 15 | |
| | | | | |
| Finance lease expense: | | | | | |
| Amortization of ROU assets | $ | 20 | | | $ | 19 | | | $ | 18 | |
| Interest on lease liabilities | 14 | | | 15 | | | 15 | |
| Total finance lease expense | $ | 34 | | | $ | 34 | | | $ | 33 | |
Supplemental consolidated cash flow information related to leases follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (In millions) |
| Cash used in operating activities: | | | | | |
| Operating leases | $ | 19 | | | $ | 24 | | | $ | 28 | |
| Finance leases | 14 | | | 15 | | | 15 | |
| Cash used in financing activities: | | | | | |
| Finance leases | 26 | | | 24 | | | 24 | |
| ROU assets recognized in exchange for lease obligations: | | | | | |
| Operating leases | 11 | | | 5 | | | 12 | |
| Finance leases | 16 | | | 17 | | | 13 | |
Supplemental information related to leases, including location of amounts reported in the accompanying consolidated balance sheets, follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| | | |
| (In millions) |
| Operating leases: | | | |
| ROU assets | | | |
| Other assets | $ | 30 | | | $ | 35 | |
| Lease liabilities | | | |
| Accounts payable and accrued liabilities (current) | $ | 15 | | | $ | 15 | |
| Other long-term liabilities (non-current) | 56 | | | 68 | |
| Total operating lease liabilities | $ | 71 | | | $ | 83 | |
| Finance leases: | | | |
| ROU assets | | | |
| Property, equipment, and capitalized software, net | $ | 61 | | | $ | 65 | |
| Lease liabilities | | | |
| Accounts payable and accrued liabilities (current) | $ | 25 | | | $ | 23 | |
| Finance lease liabilities (non-current) | 184 | | | 195 | |
Total finance lease liabilities | $ | 209 | | | $ | 218 | |
Maturities of lease liabilities as of December 31, 2025, were as follows:
| | | | | | | | | | | |
| Operating | | Finance |
| Leases | | Leases |
| | | |
| (In millions) |
| 2026 | $ | 18 | | | $ | 38 | |
| 2027 | 11 | | | 33 | |
| 2028 | 8 | | | 28 | |
| 2029 | 7 | | | 25 | |
| 2030 | 7 | | | 18 | |
| Thereafter | 37 | | | 151 | |
| Subtotal - undiscounted lease payments | 88 | | | 293 | |
| Less imputed interest | (17) | | | (84) | |
| Total | $ | 71 | | | $ | 209 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.