Leases

6 Months Ended

Jun. 30, 2021

LEASES

We have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, physical store, data center, and sortation facilities as well as server and networking equipment, vehicles, and aircraft. Gross assets acquired under finance leases, inclusive of those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $68.1 billion and $70.2 billion as of December 31, 2020 and June 30, 2021. Accumulated amortization associated with finance leases was $36.5 billion and $39.9 billion as of December 31, 2020 and June 30, 2021.

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2021		2020		2021
Operating lease cost	$	1,149	$	1,662	$	2,217	$	3,218
Finance lease cost:
Amortization of lease assets	2,029		2,489		3,923		4,945
Interest on lease liabilities	156		119		320		251
Finance lease cost	2,185		2,608		4,243		5,196

Variable lease cost	294		415		558		763
Total lease cost	$	3,628	$	4,685	$	7,018	$	9,177

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


	December 31, 2020		June 30, 2021
Weighted-average remaining lease term – operating leases	10.7 years		10.7 years
Weighted-average remaining lease term – finance leases	6.2 years		6.8 years
Weighted-average discount rate – operating leases	2.5	%	2.4	%
Weighted-average discount rate – finance leases	2.1	%	2.1	%

Our lease liabilities were as follows (in millions):


	December 31, 2020
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	44,833	$	30,437	$	75,270
Less: imputed interest	(5,734)		(2,003)		(7,737)
Present value of lease liabilities	39,099		28,434		67,533
Less: current portion of lease liabilities	(4,586)		(10,374)		(14,960)
Total long-term lease liabilities	$	34,513	$	18,060	$	52,573


	June 30, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	51,702	$	27,613	$	79,315
Less: imputed interest	(6,419)		(1,943)		(8,362)
Present value of lease liabilities	45,283		25,670		70,953
Less: current portion of lease liabilities	(5,214)		(9,442)		(14,656)
Total long-term lease liabilities	$	40,069	$	16,228	$	56,297

Leases

LEASES

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2021		2020		2021
Operating lease cost	$	1,149	$	1,662	$	2,217	$	3,218
Finance lease cost:
Amortization of lease assets	2,029		2,489		3,923		4,945
Interest on lease liabilities	156		119		320		251
Finance lease cost	2,185		2,608		4,243		5,196

Variable lease cost	294		415		558		763
Total lease cost	$	3,628	$	4,685	$	7,018	$	9,177

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


	December 31, 2020		June 30, 2021
Weighted-average remaining lease term – operating leases	10.7 years		10.7 years
Weighted-average remaining lease term – finance leases	6.2 years		6.8 years
Weighted-average discount rate – operating leases	2.5	%	2.4	%
Weighted-average discount rate – finance leases	2.1	%	2.1	%

Our lease liabilities were as follows (in millions):


	December 31, 2020
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	44,833	$	30,437	$	75,270
Less: imputed interest	(5,734)		(2,003)		(7,737)
Present value of lease liabilities	39,099		28,434		67,533
Less: current portion of lease liabilities	(4,586)		(10,374)		(14,960)
Total long-term lease liabilities	$	34,513	$	18,060	$	52,573


	June 30, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	51,702	$	27,613	$	79,315
Less: imputed interest	(6,419)		(1,943)		(8,362)
Present value of lease liabilities	45,283		25,670		70,953
Less: current portion of lease liabilities	(5,214)		(9,442)		(14,656)
Total long-term lease liabilities	$	40,069	$	16,228	$	56,297