Leases

6 Months Ended

Jun. 30, 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 $68.6 billion as of December 31, 2021 and June 30, 2022. Accumulated amortization associated with finance leases was $43.4 billion and $43.5 billion as of December 31, 2021 and June 30, 2022.

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,
	2021		2022		2021		2022
Operating lease cost	$	1,662	$	2,133	$	3,218	$	4,236
Finance lease cost:
Amortization of lease assets	2,489		1,530		4,945		3,090
Interest on lease liabilities	119		92		251		195
Finance lease cost	2,608		1,622		5,196		3,285

Variable lease cost	415		471		763		940
Total lease cost	$	4,685	$	4,226	$	9,177	$	8,461

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


	December 31, 2021		June 30, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.1 years
Weighted-average remaining lease term – finance leases	8.1 years		8.7 years
Weighted-average discount rate – operating leases	2.2	%	2.4	%
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


	June 30, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	69,341	$	20,426	$	89,767
Less: imputed interest	(8,735)		(2,009)		(10,744)
Present value of lease liabilities	60,606		18,417		79,023
Less: current portion of lease liabilities	(6,707)		(5,792)		(12,499)
Total long-term lease liabilities	$	53,899	$	12,625	$	66,524

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,
	2021		2022		2021		2022
Operating lease cost	$	1,662	$	2,133	$	3,218	$	4,236
Finance lease cost:
Amortization of lease assets	2,489		1,530		4,945		3,090
Interest on lease liabilities	119		92		251		195
Finance lease cost	2,608		1,622		5,196		3,285

Variable lease cost	415		471		763		940
Total lease cost	$	4,685	$	4,226	$	9,177	$	8,461

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


	December 31, 2021		June 30, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.1 years
Weighted-average remaining lease term – finance leases	8.1 years		8.7 years
Weighted-average discount rate – operating leases	2.2	%	2.4	%
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


	June 30, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	69,341	$	20,426	$	89,767
Less: imputed interest	(8,735)		(2,009)		(10,744)
Present value of lease liabilities	60,606		18,417		79,023
Less: current portion of lease liabilities	(6,707)		(5,792)		(12,499)
Total long-term lease liabilities	$	53,899	$	12,625	$	66,524