Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

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, aircraft, and vehicles. Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $68.0 billion and $62.7 billion as of December 31, 2022 and September 30, 2023. Accumulated amortization associated with finance leases was $45.2 billion and $44.0 billion as of December 31, 2022 and September 30, 2023.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2023		2022		2023
Operating lease cost	$	2,236	$	2,679	$	6,472	$	7,799
Finance lease cost:
Amortization of lease assets	1,496		1,439		4,586		4,524
Interest on lease liabilities	85		74		280		230
Finance lease cost	1,581		1,513		4,866		4,754
Variable lease cost	462		567		1,402		1,579
Total lease cost	$	4,279	$	4,759	$	12,740	$	14,132

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

	December 31, 2022		September 30, 2023
Weighted-average remaining lease term – operating leases	11.6 years		11.4 years
Weighted-average remaining lease term – finance leases	10.3 years		11.7 years
Weighted-average discount rate – operating leases	2.8	%	3.2	%
Weighted-average discount rate – finance leases	2.3	%	2.7	%

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

	September 30, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	88,814	$	14,574	$	103,388
Less: imputed interest	(14,912)		(2,108)		(17,020)
Present value of lease liabilities	73,902		12,466		86,368
Less: current portion of lease liabilities	(8,092)		(2,385)		(10,477)
Total long-term lease liabilities	$	65,810	$	10,081	$	75,891

Leases

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, aircraft, and vehicles. Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $68.0 billion and $62.7 billion as of December 31, 2022 and September 30, 2023. Accumulated amortization associated with finance leases was $45.2 billion and $44.0 billion as of December 31, 2022 and September 30, 2023.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2023		2022		2023
Operating lease cost	$	2,236	$	2,679	$	6,472	$	7,799
Finance lease cost:
Amortization of lease assets	1,496		1,439		4,586		4,524
Interest on lease liabilities	85		74		280		230
Finance lease cost	1,581		1,513		4,866		4,754
Variable lease cost	462		567		1,402		1,579
Total lease cost	$	4,279	$	4,759	$	12,740	$	14,132

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

	December 31, 2022		September 30, 2023
Weighted-average remaining lease term – operating leases	11.6 years		11.4 years
Weighted-average remaining lease term – finance leases	10.3 years		11.7 years
Weighted-average discount rate – operating leases	2.8	%	3.2	%
Weighted-average discount rate – finance leases	2.3	%	2.7	%

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

	September 30, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	88,814	$	14,574	$	103,388
Less: imputed interest	(14,912)		(2,108)		(17,020)
Present value of lease liabilities	73,902		12,466		86,368
Less: current portion of lease liabilities	(8,092)		(2,385)		(10,477)
Total long-term lease liabilities	$	65,810	$	10,081	$	75,891