v3.23.1
Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases Leases
We have entered into various non-cancelable operating lease agreements mostly for certain of our offices, data centers, colocations, and land. We have also entered into various non-cancelable finance lease agreements for certain network infrastructure. Our leases have original lease periods expiring between the remainder of 2023 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 are as follows (in millions):
Three Months Ended March 31,
20232022
Finance lease cost:
Amortization of right-of-use assets$104 $98 
Interest5 4 
Operating lease cost557 411 
Variable lease cost and other, net124 90 
Total lease cost$790 $603 

During the three months ended March 31, 2023, we also recorded a $673 million impairment loss for operating lease right-of-use assets as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring.

Supplemental balance sheet information related to lease liabilities is as follows:
March 31, 2023December 31, 2022
Weighted-average remaining lease term:
Finance leases14.3 years14.4 years
Operating leases 12.2 years12.5 years
Weighted-average discount rate:
Finance leases3.2 %3.1 %
Operating leases3.3 %3.2 %
The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023 (in millions):
Operating LeasesFinance Leases
The remainder of 2023$1,362 $115 
20242,208 60 
20252,049 60 
20261,859 56 
20271,834 54 
Thereafter12,729 491 
Total undiscounted cash flows22,041 836 
Less: Imputed interest(4,391)(149)
Present value of lease liabilities (1)
$17,650 $687 
Lease liabilities, current$1,479 $114 
Lease liabilities, non-current16,171 573 
Present value of lease liabilities (1)
$17,650 $687 
____________________________________
(1)    Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring.

The table above does not include lease payments that were not fixed at commencement or lease modification. As of March 31, 2023, we have additional operating and finance leases, that have not yet commenced, with lease obligations of approximately $10.26 billion and $1.33 billion, respectively, for data centers, colocations, offices, and network infrastructure. These operating and finance leases will commence between the remainder of 2023 and 2028 with lease terms of greater than one year to 30 years.

Supplemental cash flow information related to leases is as follows (in millions):
Three Months Ended March 31,
20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$478 $389 
Operating cash flows for finance leases$5 $4 
Financing cash flows for finance leases$264 $233 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$1,282 $539 
Finance leases$70 $52 
Leases Leases
We have entered into various non-cancelable operating lease agreements mostly for certain of our offices, data centers, colocations, and land. We have also entered into various non-cancelable finance lease agreements for certain network infrastructure. Our leases have original lease periods expiring between the remainder of 2023 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 are as follows (in millions):
Three Months Ended March 31,
20232022
Finance lease cost:
Amortization of right-of-use assets$104 $98 
Interest5 4 
Operating lease cost557 411 
Variable lease cost and other, net124 90 
Total lease cost$790 $603 

During the three months ended March 31, 2023, we also recorded a $673 million impairment loss for operating lease right-of-use assets as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring.

Supplemental balance sheet information related to lease liabilities is as follows:
March 31, 2023December 31, 2022
Weighted-average remaining lease term:
Finance leases14.3 years14.4 years
Operating leases 12.2 years12.5 years
Weighted-average discount rate:
Finance leases3.2 %3.1 %
Operating leases3.3 %3.2 %
The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023 (in millions):
Operating LeasesFinance Leases
The remainder of 2023$1,362 $115 
20242,208 60 
20252,049 60 
20261,859 56 
20271,834 54 
Thereafter12,729 491 
Total undiscounted cash flows22,041 836 
Less: Imputed interest(4,391)(149)
Present value of lease liabilities (1)
$17,650 $687 
Lease liabilities, current$1,479 $114 
Lease liabilities, non-current16,171 573 
Present value of lease liabilities (1)
$17,650 $687 
____________________________________
(1)    Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring.

The table above does not include lease payments that were not fixed at commencement or lease modification. As of March 31, 2023, we have additional operating and finance leases, that have not yet commenced, with lease obligations of approximately $10.26 billion and $1.33 billion, respectively, for data centers, colocations, offices, and network infrastructure. These operating and finance leases will commence between the remainder of 2023 and 2028 with lease terms of greater than one year to 30 years.

Supplemental cash flow information related to leases is as follows (in millions):
Three Months Ended March 31,
20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$478 $389 
Operating cash flows for finance leases$5 $4 
Financing cash flows for finance leases$264 $233 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$1,282 $539 
Finance leases$70 $52