Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, data centers, land, colocations, and equipment. We have also entered into various non-cancelable finance lease agreements for certain network equipment. Our leases have original lease periods expiring between the remainder of 2020 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. Our lease agreements generally 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
	March 31, 2020			March 31, 2019
Finance lease cost
Amortization of right-of-use assets	$	60		$	42
Interest	3			2
Operating lease cost	340			246
Variable lease cost and other, net	60			49
Total lease cost	$	463		$	339
Weighted-average remaining lease term
Operating leases	12.8 years			13.1 years
Finance leases	15.2 years			15.1 years
Weighted-average discount rate
Operating leases	3.2		%	3.6		%
Finance leases	3.1		%	3.2		%

The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2020 (in millions):

	Operating Leases			Finance Leases
The remainder of 2020	$	795		$	45
2021	1,281			49
2022	1,198			38
2023	1,137			36
2024	1,061			36
Thereafter	7,657			386
Total undiscounted cash flows	13,129			590
Less: Imputed interest	(2,785		)	(120		)
Present value of lease liabilities	$	10,344		$	470
Lease liabilities, current	$	835		$	44
Lease liabilities, non-current	9,509			426
Present value of lease liabilities	$	10,344		$	470

As of March 31, 2020, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of approximately $5.07 billion and $332 million, respectively. These operating and finance leases will commence between the remainder of 2020 and 2023 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):

	Three Months Ended
	March 31, 2020		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	276	$	188
Operating cash flows from finance leases	$	3	$	2
Financing cash flows from finance leases	$	100	$	125
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	304	$	1,383
Finance leases	$	25	$	35

Leases

Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, data centers, land, colocations, and equipment. We have also entered into various non-cancelable finance lease agreements for certain network equipment. Our leases have original lease periods expiring between the remainder of 2020 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. Our lease agreements generally 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
	March 31, 2020			March 31, 2019
Finance lease cost
Amortization of right-of-use assets	$	60		$	42
Interest	3			2
Operating lease cost	340			246
Variable lease cost and other, net	60			49
Total lease cost	$	463		$	339
Weighted-average remaining lease term
Operating leases	12.8 years			13.1 years
Finance leases	15.2 years			15.1 years
Weighted-average discount rate
Operating leases	3.2		%	3.6		%
Finance leases	3.1		%	3.2		%

The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2020 (in millions):

	Operating Leases			Finance Leases
The remainder of 2020	$	795		$	45
2021	1,281			49
2022	1,198			38
2023	1,137			36
2024	1,061			36
Thereafter	7,657			386
Total undiscounted cash flows	13,129			590
Less: Imputed interest	(2,785		)	(120		)
Present value of lease liabilities	$	10,344		$	470
Lease liabilities, current	$	835		$	44
Lease liabilities, non-current	9,509			426
Present value of lease liabilities	$	10,344		$	470

As of March 31, 2020, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of approximately $5.07 billion and $332 million, respectively. These operating and finance leases will commence between the remainder of 2020 and 2023 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):

	Three Months Ended
	March 31, 2020		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	276	$	188
Operating cash flows from finance leases	$	3	$	2
Financing cash flows from finance leases	$	100	$	125
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	304	$	1,383
Finance leases	$	25	$	35