Leases

9 Months Ended

Sep. 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 $71.3 billion as of December 31, 2020 and September 30, 2021. Accumulated amortization associated with finance leases was $36.5 billion and $41.7 billion as of December 31, 2020 and September 30, 2021.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2021		2020		2021
Operating lease cost	$	1,334	$	1,911	$	3,551	$	5,129
Finance lease cost:
Amortization of lease assets	2,200		2,497		6,123		7,442
Interest on lease liabilities	154		114		474		365
Finance lease cost	2,354		2,611		6,597		7,807

Variable lease cost	308		372		866		1,135
Total lease cost	$	3,996	$	4,894	$	11,014	$	14,071

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


	December 31, 2020		September 30, 2021
Weighted-average remaining lease term – operating leases	10.7 years		11.3 years
Weighted-average remaining lease term – finance leases	6.2 years		7.4 years
Weighted-average discount rate – operating leases	2.5	%	2.3	%
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


	September 30, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	61,591	$	26,618	$	88,209
Less: imputed interest	(7,637)		(2,099)		(9,736)
Present value of lease liabilities	53,954		24,519		78,473
Less: current portion of lease liabilities	(5,913)		(8,712)		(14,625)
Total long-term lease liabilities	$	48,041	$	15,807	$	63,848

Leases

LEASES

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2021		2020		2021
Operating lease cost	$	1,334	$	1,911	$	3,551	$	5,129
Finance lease cost:
Amortization of lease assets	2,200		2,497		6,123		7,442
Interest on lease liabilities	154		114		474		365
Finance lease cost	2,354		2,611		6,597		7,807

Variable lease cost	308		372		866		1,135
Total lease cost	$	3,996	$	4,894	$	11,014	$	14,071

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


	December 31, 2020		September 30, 2021
Weighted-average remaining lease term – operating leases	10.7 years		11.3 years
Weighted-average remaining lease term – finance leases	6.2 years		7.4 years
Weighted-average discount rate – operating leases	2.5	%	2.3	%
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


	September 30, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	61,591	$	26,618	$	88,209
Less: imputed interest	(7,637)		(2,099)		(9,736)
Present value of lease liabilities	53,954		24,519		78,473
Less: current portion of lease liabilities	(5,913)		(8,712)		(14,625)
Total long-term lease liabilities	$	48,041	$	15,807	$	63,848