Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

LEASESWe have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, data center, physical store, 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 $68.0 billion as of December 31, 2021 and 2022. Accumulated amortization associated with finance leases was $43.4 billion and $45.2 billion as of December 31, 2021 and 2022.

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

	Year Ended December 31,
	2020		2021		2022
Operating lease cost	$	5,019	$	7,199	$	8,847
Finance lease cost:
Amortization of lease assets	8,452		9,857		6,097
Interest on lease liabilities	617		473		361
Finance lease cost	9,069		10,330		6,458
Variable lease cost	1,238		1,556		1,852
Total lease cost	$	15,326	$	19,085	$	17,157

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

	December 31, 2021		December 31, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.6 years
Weighted-average remaining lease term – finance leases	8.1 years		10.3 years
Weighted-average discount rate – operating leases	2.2	%	2.8	%
Weighted-average discount rate – finance leases	2.0	%	2.3	%

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

	December 31, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	81,273	$	18,019	$	99,292
Less: imputed interest	(12,233)		(2,236)		(14,469)
Present value of lease liabilities	69,040		15,783		84,823
Less: current portion of lease liabilities	(7,458)		(4,397)		(11,855)
Total long-term lease liabilities	$	61,582	$	11,386	$	72,968

Leases

LEASESWe have entered into non-cancellable operating and finance leases for fulfillment, delivery, office, data center, physical store, 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 $68.0 billion as of December 31, 2021 and 2022. Accumulated amortization associated with finance leases was $43.4 billion and $45.2 billion as of December 31, 2021 and 2022.

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

	Year Ended December 31,
	2020		2021		2022
Operating lease cost	$	5,019	$	7,199	$	8,847
Finance lease cost:
Amortization of lease assets	8,452		9,857		6,097
Interest on lease liabilities	617		473		361
Finance lease cost	9,069		10,330		6,458
Variable lease cost	1,238		1,556		1,852
Total lease cost	$	15,326	$	19,085	$	17,157

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

	December 31, 2021		December 31, 2022
Weighted-average remaining lease term – operating leases	11.3 years		11.6 years
Weighted-average remaining lease term – finance leases	8.1 years		10.3 years
Weighted-average discount rate – operating leases	2.2	%	2.8	%
Weighted-average discount rate – finance leases	2.0	%	2.3	%

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

	December 31, 2022
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	81,273	$	18,019	$	99,292
Less: imputed interest	(12,233)		(2,236)		(14,469)
Present value of lease liabilities	69,040		15,783		84,823
Less: current portion of lease liabilities	(7,458)		(4,397)		(11,855)
Total long-term lease liabilities	$	61,582	$	11,386	$	72,968