Leases

12 Months Ended

Dec. 31, 2019

We have entered into various non-cancelable operating lease agreements for certain of our offices, data center, 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 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 at lease commencement. 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 for the year ended December 31, 2019 are as follows (in millions):



Finance lease cost
Amortization of right-of-use assets	$	195
Interest	12
Operating lease cost	1,139
Variable lease cost and other, net	160
Total lease cost	$	1,506

Weighted-average remaining lease term
Operating leases	13.0 years
Finance leases	15.3 years

Weighted-average discount rate
Operating leases	3.2		%
Finance leases	3.1		%

Operating lease expense was $629 million and $363 million for the years ended December 31, 2018 and 2017, respectively, under Topic 840.

The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2019 (in millions):



	Operating Leases			Finance Leases
2020	$	1,060		$	69
2021	1,244			48
2022	1,141			35
2023	1,116			35
2024	1,039			35
Thereafter	7,572			371
Total undiscounted cash flows	13,172			593
Less: Imputed interest	(2,848		)	(120		)
Present value of lease liabilities	$	10,324		$	473

Lease liabilities, current	$	800		$	55
Lease liabilities, non-current	9,524			418
Present value of lease liabilities	$	10,324		$	473

As of December 31, 2019, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of approximately $5.04 billion and $317 million, respectively. These operating and finance leases will commence between 2020 and 2023 with lease terms of greater than one year to 25 years. The table above does not include lease payments that were not fixed at commencement or lease modification.

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



Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	902
Operating cash flows from finance leases	$	12
Financing cash flows from finance leases	$	552
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	5,081
Finance leases	$	193

Leases

The components of lease costs, lease term and discount rate for the year ended December 31, 2019 are as follows (in millions):



Finance lease cost
Amortization of right-of-use assets	$	195
Interest	12
Operating lease cost	1,139
Variable lease cost and other, net	160
Total lease cost	$	1,506

Weighted-average remaining lease term
Operating leases	13.0 years
Finance leases	15.3 years

Weighted-average discount rate
Operating leases	3.2		%
Finance leases	3.1		%

Operating lease expense was $629 million and $363 million for the years ended December 31, 2018 and 2017, respectively, under Topic 840.

The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2019 (in millions):



	Operating Leases			Finance Leases
2020	$	1,060		$	69
2021	1,244			48
2022	1,141			35
2023	1,116			35
2024	1,039			35
Thereafter	7,572			371
Total undiscounted cash flows	13,172			593
Less: Imputed interest	(2,848		)	(120		)
Present value of lease liabilities	$	10,324		$	473

Lease liabilities, current	$	800		$	55
Lease liabilities, non-current	9,524			418
Present value of lease liabilities	$	10,324		$	473

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



Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	902
Operating cash flows from finance leases	$	12
Financing cash flows from finance leases	$	552
Lease liabilities arising from obtaining right-of-use assets:
Operating leases	$	5,081
Finance leases	$	193