Weighted-average discount rate for operating leases

[Table of Contents](#ia12bad69886c4075b7558d5239cbff30_7)  
8. Leases  
The following table sets forth the ROU assets and lease liabilities ($ in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|   | March 31, 2022 |  | December 31, 2021 |
| Assets |  |  |  |
|  |  |  |  |
| ROU assets (recorded within other long-term assets) | $ | 3,490  |  |  | $ | 3,566  |  |
|  |  |  |  |
| Liabilities |  |  |  |
| Short-term (recorded within accounts payable and accrued expenses) | $ | 210  |  |  | $ | 204  |  |
| Long-term (recorded within other long-term liabilities) | 3,527  |  |  | 3,619  |  |
| Total lease liabilities | $ | 3,737  |  |  | $ | 3,823  |  |

  
As of March 31, 2022, the weighted average remaining lease term for the Company was 20.7 years. The lease liabilities as of March 31, 2022 reflect a weighted average discount rate of 5.7%.  
 9. Earnings Per Share   
The following table sets forth the calculation of basic and diluted net earnings per common share ($ in millions, except per share data in dollars and shares in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended March 31, |  |  |
|   | 2022 |  | 2021 |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Earnings attributable to Centene Corporation | $ | 849  |  |  | $ | 699  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |
| Shares used in computing per share amounts: |   |  |  |  |  |  |  |
| Weighted average number of common shares outstanding | 583,230  |  |  | 581,869  |  |  |  |  |  |
| Common stock equivalents (as determined by applying the treasury stock method) | 7,428  |  |  | 7,474  |  |  |  |  |  |
| Weighted average number of common shares and potential dilutive common shares outstanding | 590,658  |  |  | 589,343  |  |  |  |  |  |
|  |   |  |   |  |  |  |  |
| Net earnings per common share attributable to Centene Corporation: |  |  |  |  |
| Basic earnings per common share | $ | 1.46  |  |  | $ | 1.20  |  |  |  |  |  |
| Diluted earnings per common share | $ | 1.44  |  |  | $ | 1.19  |  |  |  |  |  |

  
The calculation of diluted earnings per common share for the three months ended March 31, 2022 and 2021 excludes the impact of 923 thousand and 533 thousand shares, respectively, related to anti-dilutive stock options, restricted stock and restricted stock units.  
10. Segment Information   
Centene operates in two segments: Managed Care and Specialty Services. The Managed Care segment consists of Centene's health plans, including all of the functions needed to operate them. The Specialty Services segment consists of Centene's specialty companies offering auxiliary healthcare services and products. Factors used in determining the reportable business segments include the nature of operating activities, the existence of separate senior management teams, and the type of information presented to the Company's chief operating decision-maker to evaluate all results of operations.  
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