Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Summary of the Components of Net Lease Cost and Supplemental Cash Flow Information

The following table is a summary of the components of net lease cost for the years ended December 31, 2024, 2023 and 2022:

In millions	2024		2023		2022
Operating lease cost	$	2,423	$	2,532	$	2,579
Finance lease cost:
Amortization of right-of-use assets	92		84		79
Interest on lease liabilities	71		73		68
Total finance lease costs	163		157		147
Short-term lease costs	33		22		27
Variable lease costs	635		635		610
Less: sublease income	(67)		(63)		(61)
Net lease cost	$	3,187	$	3,283	$	3,302

Supplemental cash flow information related to leases for the years ended December 31, 2024, 2023 and 2022 was as follows:

In millions	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,733	$	2,756	$	2,689
Operating cash flows paid for interest portion of finance leases	71		73		68
Financing cash flows paid for principal portion of finance leases	74		70		62
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	852		1,132		591
Finance leases	30		(4)		232

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases as of December 31, 2024 and 2023 is as follows:

In millions, except remaining lease term and discount rate	2024			2023
Operating leases:
Operating lease right-of-use assets	$	15,944		$	17,252
Current portion of operating lease liabilities	$	1,751		$	1,741
Long-term operating lease liabilities	14,899			16,034
Total operating lease liabilities	$	16,650		$	17,775
Finance leases:
Property and equipment, gross	$	1,587		$	1,604
Accumulated depreciation	(447)			(375)
Property and equipment, net	$	1,140		$	1,229
Current portion of long-term debt	$	65		$	66
Long-term debt	1,295			1,325
Total finance lease liabilities	$	1,360		$	1,391
Weighted average remaining lease term (in years)
Operating leases	10.7			11.4
Finance leases	16.5			17.3
Weighted average discount rate
Operating leases	4.6		%	4.5		%
Finance leases	5.1		%	5.0		%

Maturities of Operating Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2024:

In millions	Finance Leases		Operating Leases (1)		Total
2025	$	144	$	2,683	$	2,827
2026	135		2,528		2,663
2027	132		2,343		2,475
2028	129		2,167		2,296
2029	127		1,911		2,038
Thereafter	1,371		9,557		10,928
Total lease payments (2)	2,038		21,189		23,227
Less: imputed interest	(678)		(4,539)		(5,217)
Total lease liabilities	$	1,360	$	16,650	$	18,010

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $297 million due in the future under noncancelable subleases.

(2)The Company leases pharmacy and clinic space from Target Corporation. Amounts related to such finance and operating leases are reflected above. Pharmacy lease amounts due in excess of the remaining estimated economic life of the buildings of approximately $2.2 billion are not reflected in this table since the estimated economic life of the buildings is shorter than the contractual term of the pharmacy lease arrangement.

Maturities of Finance Lease Liabilities

The following table summarizes the maturity of lease liabilities under finance and operating leases as of December 31, 2024:

In millions	Finance Leases		Operating Leases (1)		Total
2025	$	144	$	2,683	$	2,827
2026	135		2,528		2,663
2027	132		2,343		2,475
2028	129		2,167		2,296
2029	127		1,911		2,038
Thereafter	1,371		9,557		10,928
Total lease payments (2)	2,038		21,189		23,227
Less: imputed interest	(678)		(4,539)		(5,217)
Total lease liabilities	$	1,360	$	16,650	$	18,010

_____________________________________________

(1)Future operating lease payments have not been reduced by minimum sublease rentals of $297 million due in the future under noncancelable subleases.

(2)The Company leases pharmacy and clinic space from Target Corporation. Amounts related to such finance and operating leases are reflected above. Pharmacy lease amounts due in excess of the remaining estimated economic life of the buildings of approximately $2.2 billion are not reflected in this table since the estimated economic life of the buildings is shorter than the contractual term of the pharmacy lease arrangement.