LEASES
The following table presents the components of our right‑of‑use assets and liabilities related to leases and their classification in our Consolidated Balance Sheets:
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, |
| Component of Lease Balances | | Classification in Consolidated Balance Sheets | | 2025 | | 2024 |
| Assets: | | | | | | |
| Operating lease assets | | Investments and other assets | | $ | 1,134 | | | $ | 1,037 | |
| Finance lease assets | | Property and equipment, at cost, less accumulated depreciation and amortization | | 419 | | | 454 | |
| Total leased assets | | | | $ | 1,553 | | | $ | 1,491 | |
| | | | | | |
| Liabilities: | | | | | | |
| Operating lease liabilities: | | | | | | |
| Current | | Other current liabilities | | $ | 214 | | | $ | 204 | |
| Long-term | | Other long-term liabilities | | 1,043 | | | 950 | |
| Total operating lease liabilities | | | | 1,257 | | | 1,154 | |
| Finance lease liabilities: | | | | | | |
| Current | | Current portion of long-term debt | | 45 | | | 54 | |
| Long-term | | Long-term debt, net of current portion | | 407 | | | 390 | |
| Total finance lease liabilities | | | | 452 | | | 444 | |
| Total lease liabilities | | | | $ | 1,709 | | | $ | 1,598 | |
The following table presents the components of our lease expense and their classification in our consolidated statements of operations:
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| Component of Lease Expense | | Classification in Consolidated Statements of Operations | | | | Years Ended December 31, |
| | | | 2025 | | 2024 | | 2023 |
| Operating lease expense | | Other operating expenses, net | | | | $ | 267 | | | $ | 257 | | | $ | 259 | |
| Finance lease expense: | | | | | | | | | | |
| Amortization of leased assets | | Depreciation and amortization | | | | 51 | | | 49 | | | 55 | |
| Interest on lease liabilities | | Interest expense | | | | 24 | | | 7 | | | 8 | |
| Total finance lease expense | | | | | | 75 | | | 56 | | | 63 | |
| Variable and short term-lease expense | | Other operating expenses, net | | | | 143 | | | 160 | | | 159 | |
| Total lease expense | | | | | | $ | 485 | | | $ | 473 | | | $ | 481 | |
The weighted‑average lease terms and discount rates for operating and finance leases are presented in the following table:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term (years): | | | | | | |
| Operating leases | | 7.0 | | 6.8 | | 7.6 |
| Finance leases | | 24.8 | | 24.6 | | 6.0 |
| | | | | | |
| Weighted-average discount rate: | | | | | | |
| Operating leases | | 5.2 | % | | 5.2 | % | | 5.0 | % |
| Finance leases | | 6.4 | % | | 6.5 | % | | 6.5 | % |
Cash flow and other information related to leases is presented in the following table:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash outflows from operating leases | | $ | 259 | | | $ | 252 | | | $ | 258 | |
| Operating cash outflows from finance leases | | $ | 5 | | | $ | 10 | | | $ | 13 | |
| Financing cash outflows from finance leases | | $ | 62 | | | $ | 87 | | | $ | 107 | |
| | | | | | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | | |
| Operating leases | | $ | 360 | | | $ | 292 | | | $ | 168 | |
| Finance leases | | $ | 59 | | | $ | 363 | | | $ | 55 | |
Future maturities of lease liabilities at December 31, 2025 are presented in the following table:
| | | | | | | | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases | | Total |
| 2026 | | $ | 271 | | | $ | 53 | | | $ | 324 | |
| 2027 | | 247 | | | 132 | | | 379 | |
| 2028 | | 214 | | | 38 | | | 252 | |
| 2029 | | 177 | | | 28 | | | 205 | |
| 2030 | | 139 | | | 25 | | | 164 | |
| Later years | | 479 | | | 522 | | | 1,001 | |
| Total lease payments | | 1,527 | | | 798 | | | 2,325 | |
| Less: Imputed interest | | 270 | | | 346 | | | 616 | |
| Total lease obligations | | 1,257 | | | 452 | | | 1,709 | |
| Less: Current obligations | | 214 | | | 45 | | | 259 | |
| Long-term lease obligations | | $ | 1,043 | | | $ | 407 | | | $ | 1,450 | |
In May 1997, we entered into a 30‑year lease agreement for a medical campus located in Palm Springs, California. In December 2024, we executed a lease-purchase agreement to establish a new 30‑year lease beginning upon the expiration of the original lease in May 2027. This agreement includes an initial payment of $100 million at the start of the new lease term, followed by 19 annual escalating lease payments. Following our remittance of a final payment of $100 million in May 2057, ownership of certain of the leased facilities and land will transfer to us. During the year ended December 31, 2024, we recognized a $303 million right‑of‑use asset and a long-term finance lease liability in the same amount in connection with the lease-purchase agreement
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.