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Leases

12 Months Ended

Dec. 31, 2019

We have operating and finance leases for office space, data and fulfillment centers, and other corporate assets that we utilize under lease arrangements.

The following table provides a summary of leases by balance sheet location as of December 31, 2019 (in millions):



		As of
	Balance Sheet Location	December 31, 2019
Assets
Operating	Operating lease right-of-use assets	$	628
Finance	Property and equipment, net ⁽¹⁾	31
Total leased assets		$	659

Liabilities
Operating - current	Accrued expenses and other current liabilities	$	170
Finance - current	Short-term debt	11
Operating - noncurrent	Operating lease liabilities	492
Finance - noncurrent	Long-term debt	16
Total lease liabilities		$	689


(1)	Recorded net of accumulated amortization of $2 million as of December 31, 2019.

The components of lease expense for the year ended December 31, 2019 were as follows (in millions):



Lease Costs	Statement of Income Location	Year Ended December 31, 2019
Finance lease cost:
Amortization of right-of-use assets	Cost of net revenues	$	2
Interest on lease liabilities	Interest and other, net	1
Operating lease cost ⁽²⁾	Cost of net revenues, Sales and marketing, Product development and General and administrative expenses	214
Total lease cost		$	217


(2)	Includes variable lease payments and sublease income that were immaterial during the year ended December 31, 2019.

Maturity of lease liabilities under our non-cancelable operating and financing leases as of December 31, 2019 are as follows (in millions):



	Operating			Finance
2020	$	188		$	12
2021	162			12
2022	146			5
2023	98			—
2024	45			—
Thereafter	78			—
Total lease payments	717			29
Less interest	(56		)	(2		)
Present value of lease liabilities	$	661		$	27

Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):



	Leases ⁽³⁾
2019	$	136
2020	104
2021	91
2022	76
2023	51
Thereafter	119
Total minimum lease payments	$	577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

Rent expense for the years ended December 31, 2019, 2018 and 2017 totaled $233 million, $118 million and $105 million, respectively. Rent expense includes operating lease costs as well as expense for non-lease components such as common area maintenance.

The following table provides a summary of our lease terms and discount rates for the year ended December 31, 2019:



	Year Ended December 31, 2019
Weighted Average Remaining Lease Term
Operating leases	4.66 years

Weighted Average Discount Rate
Operating leases	3.11	%

Supplemental information related to our leases for the year ended December 31, 2019 is as follows (in millions):



	Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	196
Operating cash flows from finance leases	$	1
Financing cash flows from finance leases	$	6



	Year Ended December 31, 2019
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	99
Finance leases	$	34

Leases