Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

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 2021 and 2063.

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

	Year Ended December 31,
	2019		2020
Operating lease cost	$	1,820	$	2,267
Variable lease cost	541		619
Total operating lease cost	$	2,361	$	2,886

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

	Year Ended December 31,
	2019		2020
Cash payments for operating leases	$	1,661	$	2,004
New operating lease assets obtained in exchange for operating lease liabilities	$	4,391	$	2,765

As of December 31, 2020, our operating leases had a weighted average remaining lease term of 9 years and a weighted average discount rate of 2.6%. Future lease payments under operating leases as of December 31, 2020 were as follows (in millions):

2021	$	2,198
2022	2,170
2023	1,995
2024	1,738
2025	1,389
Thereafter	5,601
Total future lease payments	15,091
Less imputed interest	(2,251)
Total lease liability balance	$	12,840

As of December 31, 2020, we have entered into leases that have not yet commenced with future lease payments of $8.0 billion, excluding purchase options, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2021 and 2026 with non-cancelable lease terms of 1 to 25 years.