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Leases

12 Months Ended

Dec. 31, 2019

We have entered into operating and finance lease agreements primarily for data centers, land and offices throughout the world with lease periods expiring between 2020 and 2063.

Components of operating lease expense were as follows (in millions):



	Year Ended
	December 31, 2019
Operating lease cost	$	1,820
Variable lease cost	541
Total operating lease cost	$	2,361

Supplemental information related to operating leases was as follows (in millions):



	Year Ended
	December 31, 2019
Cash payments for operating leases	$	1,661
New operating lease assets obtained in exchange for operating lease liabilities	$	4,391

As of December 31, 2019, our operating leases had a weighted average remaining lease term of 10 years and a weighted average discount rate of 2.8%. Future lease payments under operating leases as of December 31, 2019 were as follows (in millions):



2020	$	1,757
2021	1,845
2022	1,680
2023	1,508
2024	1,301
Thereafter	5,763
Total future lease payments	13,854
Less imputed interest	(2,441		)
Total lease liability balance	$	11,413

As of December 31, 2019, we have entered into leases that have not yet commenced with future lease payments of $7.4 billion, excluding purchase options, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2020 and 2026 with non-cancelable lease terms of 1 to 25 years.

Supplemental Information for Comparative Periods

As of December 31, 2018, prior to the adoption of Topic 842, future minimum payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year, net of sublease income amounts, were as follows (in millions):



	Operating Leases⁽¹⁾		Sub-lease Income		Net Operating Leases
2019	$	1,319	$	16	$	1,303
2020	1,397		13		1,384
2021	1,337		10		1,327
2022	1,153		8		1,145
2023	980		3		977
Thereafter	3,916		5		3,911
Total minimum payments	$	10,102	$	55	$	10,047


⁽¹⁾	Includes future minimum payments for leases which have not yet commenced.

Rent expense under operating leases was $1.1 billion and $1.3 billion for the years ended December 31, 2017, and 2018, respectively.

Leases

We have entered into operating and finance lease agreements primarily for data centers, land and offices throughout the world with lease periods expiring between 2020 and 2063.

Components of operating lease expense were as follows (in millions):



	Year Ended
	December 31, 2019
Operating lease cost	$	1,820
Variable lease cost	541
Total operating lease cost	$	2,361

Supplemental information related to operating leases was as follows (in millions):



	Year Ended
	December 31, 2019
Cash payments for operating leases	$	1,661
New operating lease assets obtained in exchange for operating lease liabilities	$	4,391



2020	$	1,757
2021	1,845
2022	1,680
2023	1,508
2024	1,301
Thereafter	5,763
Total future lease payments	13,854
Less imputed interest	(2,441		)
Total lease liability balance	$	11,413

Supplemental Information for Comparative Periods



	Operating Leases⁽¹⁾		Sub-lease Income		Net Operating Leases
2019	$	1,319	$	16	$	1,303
2020	1,397		13		1,384
2021	1,337		10		1,327
2022	1,153		8		1,145
2023	980		3		977
Thereafter	3,916		5		3,911
Total minimum payments	$	10,102	$	55	$	10,047


⁽¹⁾	Includes future minimum payments for leases which have not yet commenced.

Rent expense under operating leases was $1.1 billion and $1.3 billion for the years ended December 31, 2017, and 2018, respectively.