v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
Note 6 – Leases    
Our leases primarily include corporate offices, data centers, and servers. The lease term of operating and finance leases vary from less than one year to 76 years. We have leases that include one or more options to extend the lease term for up to 14 years as well as options to terminate the lease within one year. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.
The components of our lease expense were as follows (in millions):
Year Ended December 31,
202320242025
Lease cost
Finance lease cost:
      Amortization of assets$188 $168 $153 
      Interest of lease liabilities31 25 17 
Operating lease cost
321 294 288 
Short-term lease cost10 2 4 
Variable lease cost129 115 117 
Sublease income(22)(22)(19)
Total lease cost$657 $582 $560 
Supplemental cash flow information related to leases was as follows (in millions):
Year Ended December 31,
202320242025
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases$32 $26 $16 
Operating cash flows from operating leases335 332 303 
Financing cash flows from financing leases171 172 157 
Right-of-use assets obtained in exchange for lease obligations:
Operating lease liabilities$84 $132 $126 
Finance lease liabilities216 4 71 
Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):
As of December 31,
20242025
Operating Leases
Operating lease right-of-use assets$1,158 $1,114 
Operating lease liability, current$175 $169 
Operating lease liabilities, non-current1,454 1,390 
     Total operating lease liabilities$1,629 $1,559 
As of December 31,
20242025
Finance Leases
Property and equipment, at cost$641 $625 
Accumulated depreciation(372)(439)
     Property and equipment, net $269 $186 
Other current liabilities$136 $138 
Other long-term liabilities174 84 
     Total finance leases liabilities$310 $222 
As of December 31,
20242025
Weighted-average remaining lease term
     Operating leases15 years15 years
     Finance leases2 years2 years
Weighted-average discount rate
     Operating leases6.7 %6.6 %
     Finance leases6.6 %6.0 %
Maturities of lease liabilities were as follows (in millions):
As of December 31, 2025
Operating LeasesFinance Leases
2026$265 $167 
2027262 50 
2028232 14 
2029226 1 
2030194 1 
Thereafter1,592 — 
Total undiscounted lease payments2,771 233 
Less: imputed interest(1,212)(11)
Total lease liabilities$1,559 $222 
As of December 31, 2025, additional operating leases and finance leases that have been executed but not yet commenced were immaterial.
Mission Bay 1 & 2
We own two adjacent office buildings, Mission Bay 1 & 2, which are located on land for which we have two 76-year land lease agreements (“Land Leases”) ending in 2092. We have a 49% indirect interest in the land (“Indirect Interest”) which are accounted for as a financing arrangement due to our 49% previous ownership in the land and continuing involvement through a purchase option on the land in the Land Leases. As of December 31, 2025, our Indirect Interest is included in property and equipment, net, with the corresponding financing obligation included in other long-term liabilities. The remaining 51% of the Land Leases are accounted for as operating leases. The annual rent amounts under the Land Leases are fixed through 2032, after which, the annual rent amounts will adjust annually based on the prevailing consumer price index.
Future lease payments on the Land Leases as of December 31, 2025 are $1.7 billion, of which 51% is included in our operating lease commitments and the remaining 49%, or $820 million, is allocated to the financing obligation of the Indirect Interest through 2092.
Leases
Note 6 – Leases    
Our leases primarily include corporate offices, data centers, and servers. The lease term of operating and finance leases vary from less than one year to 76 years. We have leases that include one or more options to extend the lease term for up to 14 years as well as options to terminate the lease within one year. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.
The components of our lease expense were as follows (in millions):
Year Ended December 31,
202320242025
Lease cost
Finance lease cost:
      Amortization of assets$188 $168 $153 
      Interest of lease liabilities31 25 17 
Operating lease cost
321 294 288 
Short-term lease cost10 2 4 
Variable lease cost129 115 117 
Sublease income(22)(22)(19)
Total lease cost$657 $582 $560 
Supplemental cash flow information related to leases was as follows (in millions):
Year Ended December 31,
202320242025
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from financing leases$32 $26 $16 
Operating cash flows from operating leases335 332 303 
Financing cash flows from financing leases171 172 157 
Right-of-use assets obtained in exchange for lease obligations:
Operating lease liabilities$84 $132 $126 
Finance lease liabilities216 4 71 
Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate):
As of December 31,
20242025
Operating Leases
Operating lease right-of-use assets$1,158 $1,114 
Operating lease liability, current$175 $169 
Operating lease liabilities, non-current1,454 1,390 
     Total operating lease liabilities$1,629 $1,559 
As of December 31,
20242025
Finance Leases
Property and equipment, at cost$641 $625 
Accumulated depreciation(372)(439)
     Property and equipment, net $269 $186 
Other current liabilities$136 $138 
Other long-term liabilities174 84 
     Total finance leases liabilities$310 $222 
As of December 31,
20242025
Weighted-average remaining lease term
     Operating leases15 years15 years
     Finance leases2 years2 years
Weighted-average discount rate
     Operating leases6.7 %6.6 %
     Finance leases6.6 %6.0 %
Maturities of lease liabilities were as follows (in millions):
As of December 31, 2025
Operating LeasesFinance Leases
2026$265 $167 
2027262 50 
2028232 14 
2029226 1 
2030194 1 
Thereafter1,592 — 
Total undiscounted lease payments2,771 233 
Less: imputed interest(1,212)(11)
Total lease liabilities$1,559 $222 
As of December 31, 2025, additional operating leases and finance leases that have been executed but not yet commenced were immaterial.
Mission Bay 1 & 2
We own two adjacent office buildings, Mission Bay 1 & 2, which are located on land for which we have two 76-year land lease agreements (“Land Leases”) ending in 2092. We have a 49% indirect interest in the land (“Indirect Interest”) which are accounted for as a financing arrangement due to our 49% previous ownership in the land and continuing involvement through a purchase option on the land in the Land Leases. As of December 31, 2025, our Indirect Interest is included in property and equipment, net, with the corresponding financing obligation included in other long-term liabilities. The remaining 51% of the Land Leases are accounted for as operating leases. The annual rent amounts under the Land Leases are fixed through 2032, after which, the annual rent amounts will adjust annually based on the prevailing consumer price index.
Future lease payments on the Land Leases as of December 31, 2025 are $1.7 billion, of which 51% is included in our operating lease commitments and the remaining 49%, or $820 million, is allocated to the financing obligation of the Indirect Interest through 2092.