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Leases

6 Months Ended

Jun. 30, 2019

We have entered into various non-cancelable operating lease agreements for certain of our offices, data center, land, colocations and certain network equipment. Our leases have original lease periods expiring between 2019 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs, lease term and discount rate are as follows (in millions):



	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Finance lease cost
Amortization of right-of-use assets	$	47	$	89
Interest	3		5
Operating lease cost	274		520
Variable lease cost and other, net	21		70
Total lease cost	$	345	$	684

Weighted Average Remaining Lease Term
Operating leases			13.1 years
Finance leases			15.3 years

Weighted Average Discount Rate
Operating leases			3.5		%
Finance leases			3.2		%

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019 (in millions):



	Operating Leases			Finance Leases
The remainder of 2019	$	409		$	30
2020	1,004			43
2021	956			34
2022	877			30
2023	840			30
Thereafter	6,222			334
Total undiscounted cash flows	10,308			501
Less imputed interest	(2,498		)	(107		)
Present value of lease liabilities	$	7,810		$	394

As of June 30, 2019, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of $4.82 billion and $471 million, respectively. These operating and finance leases will commence between 2019 and 2022 with lease terms of greater than one year to 25 years. This table does not include lease payments that were not fixed at commencement or modification.

Supplemental cash flow information related to leases are as follows (in millions):



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	388
Operating cash flows from finance leases	$	5
Financing cash flows from finance leases	$	267
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	2,203
Finance leases	$	75

Leases

The components of lease costs, lease term and discount rate are as follows (in millions):



	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Finance lease cost
Amortization of right-of-use assets	$	47	$	89
Interest	3		5
Operating lease cost	274		520
Variable lease cost and other, net	21		70
Total lease cost	$	345	$	684

Weighted Average Remaining Lease Term
Operating leases			13.1 years
Finance leases			15.3 years

Weighted Average Discount Rate
Operating leases			3.5		%
Finance leases			3.2		%

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2019 (in millions):



	Operating Leases			Finance Leases
The remainder of 2019	$	409		$	30
2020	1,004			43
2021	956			34
2022	877			30
2023	840			30
Thereafter	6,222			334
Total undiscounted cash flows	10,308			501
Less imputed interest	(2,498		)	(107		)
Present value of lease liabilities	$	7,810		$	394

Supplemental cash flow information related to leases are as follows (in millions):



	Six Months Ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	388
Operating cash flows from finance leases	$	5
Financing cash flows from finance leases	$	267
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	2,203
Finance leases	$	75