Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LEASESWe 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 $72.2 billion as of December 31, 2020 and 2021. Accumulated amortization associated with finance leases was $36.5 billion and $43.4 billion as of December 31, 2020 and 2021.

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

	Year Ended December 31,
	2019		2020		2021
Operating lease cost	$	3,669	$	5,019	$	7,199
Finance lease cost:
Amortization of lease assets	10,094		8,452		9,857
Interest on lease liabilities	695		617		473
Finance lease cost	10,789		9,069		10,330
Variable lease cost	966		1,238		1,556
Total lease cost	$	15,424	$	15,326	$	19,085

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

	December 31, 2020		December 31, 2021
Weighted-average remaining lease term – operating leases	10.7 years		11.3 years
Weighted-average remaining lease term – finance leases	6.2 years		8.1 years
Weighted-average discount rate – operating leases	2.5	%	2.2	%
Weighted-average discount rate – finance leases	2.1	%	2.0	%

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

	December 31, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	66,269	$	25,866	$	92,135
Less: imputed interest	(7,939)		(2,113)		(10,052)
Present value of lease liabilities	58,330		23,753		82,083
Less: current portion of lease liabilities	(6,349)		(8,083)		(14,432)
Total long-term lease liabilities	$	51,981	$	15,670	$	67,651

Leases

LEASESWe 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 $72.2 billion as of December 31, 2020 and 2021. Accumulated amortization associated with finance leases was $36.5 billion and $43.4 billion as of December 31, 2020 and 2021.

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

	Year Ended December 31,
	2019		2020		2021
Operating lease cost	$	3,669	$	5,019	$	7,199
Finance lease cost:
Amortization of lease assets	10,094		8,452		9,857
Interest on lease liabilities	695		617		473
Finance lease cost	10,789		9,069		10,330
Variable lease cost	966		1,238		1,556
Total lease cost	$	15,424	$	15,326	$	19,085

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

	December 31, 2020		December 31, 2021
Weighted-average remaining lease term – operating leases	10.7 years		11.3 years
Weighted-average remaining lease term – finance leases	6.2 years		8.1 years
Weighted-average discount rate – operating leases	2.5	%	2.2	%
Weighted-average discount rate – finance leases	2.1	%	2.0	%

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

	December 31, 2021
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	66,269	$	25,866	$	92,135
Less: imputed interest	(7,939)		(2,113)		(10,052)
Present value of lease liabilities	58,330		23,753		82,083
Less: current portion of lease liabilities	(6,349)		(8,083)		(14,432)
Total long-term lease liabilities	$	51,981	$	15,670	$	67,651