Leases

3 Months Ended

Mar. 31, 2023

LEASES

We have entered into non-cancellable operating and finance leases for fulfillment network, office, data center, and physical store 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 $68.0 billion and $66.5 billion as of December 31, 2022 and March 31, 2023. Accumulated amortization associated with finance leases was $45.2 billion as of December 31, 2022 and March 31, 2023.

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


	Three Months Ended March 31,
	2022		2023
Operating lease cost	$	2,103	$	2,512
Finance lease cost:
Amortization of lease assets	1,560		1,546
Interest on lease liabilities	103		80
Finance lease cost	1,663		1,626

Variable lease cost	469		518
Total lease cost	$	4,235	$	4,656

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


	December 31, 2022		March 31, 2023
Weighted-average remaining lease term – operating leases	11.6 years		11.5 years
Weighted-average remaining lease term – finance leases	10.3 years		10.8 years
Weighted-average discount rate – operating leases	2.8	%	3.0	%
Weighted-average discount rate – finance leases	2.3	%	2.4	%

Our lease liabilities were as follows (in millions):


	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


	March 31, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	84,468	$	16,511	$	100,979
Less: imputed interest	(13,220)		(2,064)		(15,284)
Present value of lease liabilities	71,248		14,447		85,695
Less: current portion of lease liabilities	(7,752)		(3,676)		(11,428)
Total long-term lease liabilities	$	63,496	$	10,771	$	74,267

Leases

LEASES

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


	Three Months Ended March 31,
	2022		2023
Operating lease cost	$	2,103	$	2,512
Finance lease cost:
Amortization of lease assets	1,560		1,546
Interest on lease liabilities	103		80
Finance lease cost	1,663		1,626

Variable lease cost	469		518
Total lease cost	$	4,235	$	4,656

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


	December 31, 2022		March 31, 2023
Weighted-average remaining lease term – operating leases	11.6 years		11.5 years
Weighted-average remaining lease term – finance leases	10.3 years		10.8 years
Weighted-average discount rate – operating leases	2.8	%	3.0	%
Weighted-average discount rate – finance leases	2.3	%	2.4	%

Our lease liabilities were as follows (in millions):


	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


	March 31, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	84,468	$	16,511	$	100,979
Less: imputed interest	(13,220)		(2,064)		(15,284)
Present value of lease liabilities	71,248		14,447		85,695
Less: current portion of lease liabilities	(7,752)		(3,676)		(11,428)
Total long-term lease liabilities	$	63,496	$	10,771	$	74,267