Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

Leases

We have operating and finance leases for office space, data and fulfillment centers, and other corporate assets that we utilize under lease arrangements.

The following table provides a summary of leases by balance sheet location as of June 30, 2019 (in millions):

		As of
	Balance Sheet Location	June 30, 2019
Assets
Operating	Operating lease right-of-use assets	$	670
Finance	Property and equipment, net (1)	29
Total leased assets		$	699
Liabilities
Operating - current	Accrued expenses and other current liabilities	$	170
Finance - current	Short-term debt	9
Operating - noncurrent	Operating lease liabilities	519
Finance - noncurrent	Long-term debt	19
Total lease liabilities		$	717

 

(1) Recorded net of accumulated amortization of $1 million as of June 30, 2019.

The components of lease expense for the three and six months ended June 30, 2019 were as follows (in millions):

Lease Costs	Statement of Income Location	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Finance lease cost:
Amortization of right-of-use assets	Cost of net revenues	$	1	$	1
Interest on lease liabilities	Interest and other, net	$	—	—
Operating lease cost (2)	Cost of net revenues, Sales and marketing, Product development and General and administrative expenses	$	53	$	105
Total lease cost		$	54	$	106

(2) Includes variable lease payments and sublease income that were immaterial during the three and six months ended June 30, 2019.

Maturity of lease liabilities under our non-cancelable operating and financing leases as of June 30, 2019 are as follows (in millions):  

	Operating			Finance
Remaining 2019	$	101		$	5
2020	165			11
2021	151			11
2022	132			3
2023	88			—
Thereafter	119			—
Total lease payments	756			30
Less interest	(67		)	(2		)
Present value of lease liabilities	$	689		$	28

Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):  

	Leases (3)
2019	$	136
2020	104
2021	91
2022	76
2023	51
Thereafter	119
Total minimum lease payments	$	577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

The following table provides a summary of our lease terms and discount rates for the six months ended June 30, 2019:

	Six Months Ended June 30, 2019
Weighted Average Remaining Lease Term
Operating leases	4.96 years
Weighted Average Discount Rate
Operating leases	3.50	%

Supplemental information related to our leases for the three and six months ended June 30, 2019 is as follows (in millions):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	48	$	98
Operating cash flows from finance leases	$	—	$	—
Financing cash flows from finance leases	$	2	$	2

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	21	$	39
Finance leases	$	30	$	30

Leases

Leases

We have operating and finance leases for office space, data and fulfillment centers, and other corporate assets that we utilize under lease arrangements.

The following table provides a summary of leases by balance sheet location as of June 30, 2019 (in millions):

		As of
	Balance Sheet Location	June 30, 2019
Assets
Operating	Operating lease right-of-use assets	$	670
Finance	Property and equipment, net (1)	29
Total leased assets		$	699
Liabilities
Operating - current	Accrued expenses and other current liabilities	$	170
Finance - current	Short-term debt	9
Operating - noncurrent	Operating lease liabilities	519
Finance - noncurrent	Long-term debt	19
Total lease liabilities		$	717

 

(1) Recorded net of accumulated amortization of $1 million as of June 30, 2019.

The components of lease expense for the three and six months ended June 30, 2019 were as follows (in millions):

Lease Costs	Statement of Income Location	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Finance lease cost:
Amortization of right-of-use assets	Cost of net revenues	$	1	$	1
Interest on lease liabilities	Interest and other, net	$	—	—
Operating lease cost (2)	Cost of net revenues, Sales and marketing, Product development and General and administrative expenses	$	53	$	105
Total lease cost		$	54	$	106

(2) Includes variable lease payments and sublease income that were immaterial during the three and six months ended June 30, 2019.

Maturity of lease liabilities under our non-cancelable operating and financing leases as of June 30, 2019 are as follows (in millions):  

	Operating			Finance
Remaining 2019	$	101		$	5
2020	165			11
2021	151			11
2022	132			3
2023	88			—
Thereafter	119			—
Total lease payments	756			30
Less interest	(67		)	(2		)
Present value of lease liabilities	$	689		$	28

Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):  

	Leases (3)
2019	$	136
2020	104
2021	91
2022	76
2023	51
Thereafter	119
Total minimum lease payments	$	577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

The following table provides a summary of our lease terms and discount rates for the six months ended June 30, 2019:

	Six Months Ended June 30, 2019
Weighted Average Remaining Lease Term
Operating leases	4.96 years
Weighted Average Discount Rate
Operating leases	3.50	%

Supplemental information related to our leases for the three and six months ended June 30, 2019 is as follows (in millions):

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	48	$	98
Operating cash flows from finance leases	$	—	$	—
Financing cash flows from finance leases	$	2	$	2

	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	21	$	39
Finance leases	$	30	$	30