Company: HUM
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000049071-25-000007
Chunk: 40

Company: HUMANA INC
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 40
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 to, common area maintenance, taxes and insurance which are not dependent upon an index or rate. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Most leases include options to renew, with renewal terms that can extend the lease term. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.Right-of-use assets included within other long-term assets in our consolidated balance sheets were $445 million and $510 million at December 31, 2024 and December 31, 2023, respectively. Operating lease liabilities included within trade accounts payable and accrued expenses in our consolidated balance sheets were $130 million and $149 million at December 31, 2024 and December 31, 2023, respectively. Additionally, operating lease liabilities included within other long-term liabilities in our consolidated balance sheets were $392 million and $444 million at December 31, 2024 and December 31, 2023, respectively. The classification of our operating lease liabilities is based on the remaining lease term.For the years ended December 31, 2024, 2023 and 2022, total fixed operating lease costs, excluding short-term lease costs, were $121 million, $145 million and $183 million, respectively, and are included within operating costs in our consolidated statements of income. Short-term lease costs were not material for the years ended December 31, 2024, 2023 and 2022. In addition, for the years ended December 31, 2024, 2023 and 2022, total variable operating lease costs were $127 million, $120 million and $101 million, respectively, and are included within operating costs in our consolidated statements of income. We sublease facilities or partial facilities to third-party tenants for space not used in our operations. For the years ended December 31, 2024, 2023 and 2022, sublease rental income was $50 million, $66 million and $52 million, respectively, and is included within operating costs in our consolidated statements of income.The weighted average remaining lease term is 5.1 years and 5.4 years at December 31, 2024 and December