Leases

3 Months Ended

Mar. 31, 2022

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 $72.2 billion and $71.0 billion as of December 31, 2021 and March 31, 2022. Accumulated amortization associated with finance leases was $43.4 billion and $43.8 billion as of December 31, 2021 and March 31, 2022.

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


	Three Months Ended March 31,
		2021		2022
Operating lease cost		$	1,556	$	2,103
Finance lease cost:
Amortization of lease assets		2,456		1,560
Interest on lease liabilities		132		103
Finance lease cost		2,588		1,663

Variable lease cost		348		469
Total lease cost		$	4,492	$	4,235

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


	December 31, 2021		March 31, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.1 years
Weighted-average remaining lease term – finance leases	8.1 years		8.6 years
Weighted-average discount rate – operating leases	2.2	%	2.3	%
Weighted-average discount rate – finance leases	2.0	%	2.1	%

Our lease liabilities were as follows (in millions):


	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


	March 31, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	66,144	$	23,094	$	89,238
Less: imputed interest	(7,858)		(2,167)		(10,025)
Present value of lease liabilities	58,286		20,927		79,213
Less: current portion of lease liabilities	(6,640)		(6,842)		(13,482)
Total long-term lease liabilities	$	51,646	$	14,085	$	65,731

Leases

LEASES

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


	Three Months Ended March 31,
		2021		2022
Operating lease cost		$	1,556	$	2,103
Finance lease cost:
Amortization of lease assets		2,456		1,560
Interest on lease liabilities		132		103
Finance lease cost		2,588		1,663

Variable lease cost		348		469
Total lease cost		$	4,492	$	4,235

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


	December 31, 2021		March 31, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.1 years
Weighted-average remaining lease term – finance leases	8.1 years		8.6 years
Weighted-average discount rate – operating leases	2.2	%	2.3	%
Weighted-average discount rate – finance leases	2.0	%	2.1	%

Our lease liabilities were as follows (in millions):


	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


	March 31, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	66,144	$	23,094	$	89,238
Less: imputed interest	(7,858)		(2,167)		(10,025)
Present value of lease liabilities	58,286		20,927		79,213
Less: current portion of lease liabilities	(6,640)		(6,842)		(13,482)
Total long-term lease liabilities	$	51,646	$	14,085	$	65,731