LEASES

Gross assets recorded under finance leases, included in “Property and equipment, net,” were $36.1 billion and $46.5 billion as of December 31, 2018 and March 31, 2019. Accumulated amortization associated with finance leases was $19.8 billion and $23.0 billion as of December 31, 2018 and March 31, 2019.

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):



	Three Months Ended March 31, 2019

Operating lease cost (1)	$	836
Finance lease cost:
Amortization of lease assets	2,307
Interest on lease liabilities	156
Finance lease cost	2,463
Variable lease cost	250
Total lease cost	$	3,549

__________________


(1)	Rental expense under operating lease agreements was $791 million for Q1 2018.

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:



	March 31, 2019

Weighted-average remaining lease term – operating leases	11.4 years
Weighted-average remaining lease term – finance leases	5.7 years
Weighted-average discount rate – operating leases	3.2	%
Weighted-average discount rate – finance leases	2.9	%

As of March 31, 2019, our lease liabilities were as follows (in millions):



	Operating Leases			Finance Leases			Total

Gross lease liabilities	$	26,731		$	25,004		$	51,735
Less: imputed interest	(5,850		)	(1,810		)	(7,660		)
Present value of lease liabilities	20,881			23,194			44,075
Less: current portion of lease liabilities	(2,490		)	(8,310		)	(10,800		)
Total long-term lease liabilities	$	18,391		$	14,884		$	33,275