Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

LEASES

We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, 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 $62.5 billion and $59.5 billion as of December 31, 2023 and June 30, 2024. Accumulated amortization associated with finance leases was $44.7 billion and $43.5 billion as of December 31, 2023 and June 30, 2024.

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,
	2023		2024		2023		2024
Operating lease cost	$	2,608	$	2,921	$	5,120	$	5,750
Finance lease cost:
Amortization of lease assets	1,539		948		3,085		1,889
Interest on lease liabilities	76		72		156		145
Finance lease cost	1,615		1,020		3,241		2,034
Variable lease cost	494		592		1,012		1,227
Total lease cost	$	4,717	$	4,533	$	9,373	$	9,011

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

	December 31, 2023		June 30, 2024
Weighted-average remaining lease term – operating leases	11.3 years		10.9 years
Weighted-average remaining lease term – finance leases	11.9 years		12.0 years
Weighted-average discount rate – operating leases	3.3	%	3.4	%
Weighted-average discount rate – finance leases	2.7	%	2.9	%

Our lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	90,777	$	14,106	$	104,883
Less: imputed interest	(15,138)		(1,997)		(17,135)
Present value of lease liabilities	75,639		12,109		87,748
Less: current portion of lease liabilities	(8,419)		(2,032)		(10,451)
Total long-term lease liabilities	$	67,220	$	10,077	$	77,297

	June 30, 2024
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	93,266	$	12,807	$	106,073
Less: imputed interest	(15,834)		(1,980)		(17,814)
Present value of lease liabilities	77,432		10,827		88,259
Less: current portion of lease liabilities	(8,736)		(1,439)		(10,175)
Total long-term lease liabilities	$	68,696	$	9,388	$	78,084

Leases

LEASES

We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, 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 $62.5 billion and $59.5 billion as of December 31, 2023 and June 30, 2024. Accumulated amortization associated with finance leases was $44.7 billion and $43.5 billion as of December 31, 2023 and June 30, 2024.

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,
	2023		2024		2023		2024
Operating lease cost	$	2,608	$	2,921	$	5,120	$	5,750
Finance lease cost:
Amortization of lease assets	1,539		948		3,085		1,889
Interest on lease liabilities	76		72		156		145
Finance lease cost	1,615		1,020		3,241		2,034
Variable lease cost	494		592		1,012		1,227
Total lease cost	$	4,717	$	4,533	$	9,373	$	9,011

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

	December 31, 2023		June 30, 2024
Weighted-average remaining lease term – operating leases	11.3 years		10.9 years
Weighted-average remaining lease term – finance leases	11.9 years		12.0 years
Weighted-average discount rate – operating leases	3.3	%	3.4	%
Weighted-average discount rate – finance leases	2.7	%	2.9	%

Our lease liabilities were as follows (in millions):

	December 31, 2023
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	90,777	$	14,106	$	104,883
Less: imputed interest	(15,138)		(1,997)		(17,135)
Present value of lease liabilities	75,639		12,109		87,748
Less: current portion of lease liabilities	(8,419)		(2,032)		(10,451)
Total long-term lease liabilities	$	67,220	$	10,077	$	77,297

	June 30, 2024
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	93,266	$	12,807	$	106,073
Less: imputed interest	(15,834)		(1,980)		(17,814)
Present value of lease liabilities	77,432		10,827		88,259
Less: current portion of lease liabilities	(8,736)		(1,439)		(10,175)
Total long-term lease liabilities	$	68,696	$	9,388	$	78,084