LEASESWe have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles. Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “
Property and equipment, net” and were $56.5 billion and $55.6 billion as of December 31, 2024 and 2025. Accumulated amortization associated with finance leases was $41.8 billion and $40.4 billion as of December 31, 2024 and 2025.
Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| 2023 | | 2024 | | 2025 |
| Operating lease cost | $ | 10,550 | | | $ | 11,961 | | | $ | 14,006 | |
| Finance lease cost: | | | | | |
| Amortization of lease assets | 5,899 | | | 3,866 | | | 3,284 | |
| Interest on lease liabilities | 304 | | | 285 | | | 312 | |
| Finance lease cost | 6,203 | | | 4,151 | | | 3,596 | |
| Variable lease cost | 2,165 | | | 2,465 | | | 2,694 | |
| Total lease cost | $ | 18,918 | | | $ | 18,577 | | | $ | 20,296 | |
Other information about lease amounts recognized in our consolidated financial statements is as follows:
| | | | | | | | | | | |
| | December 31, 2024 | | December 31, 2025 |
| | | | |
| Weighted-average remaining lease term – operating leases | 10.6 years | | 10.0 years |
| Weighted-average remaining lease term – finance leases | 11.9 years | | 12.6 years |
| Weighted-average discount rate – operating leases | 3.5 | % | | 3.7 | % |
| Weighted-average discount rate – finance leases | 3.0 | % | | 3.4 | % |
Our lease liabilities were as follows (in millions):
| | | | | | | | | | | | | | | | | |
| December 31, 2024 |
| | Operating Leases | | Finance Leases | | Total |
| | | | | |
| Gross lease liabilities | $ | 95,294 | | | $ | 12,520 | | | $ | 107,814 | |
| Less: imputed interest | (15,698) | | | (1,918) | | | (17,616) | |
| Present value of lease liabilities | 79,596 | | | 10,602 | | | 90,198 | |
| Less: current portion of lease liabilities | (10,546) | | | (1,375) | | | (11,921) | |
| Total long-term lease liabilities | $ | 69,050 | | | $ | 9,227 | | | $ | 78,277 | |
| | | | | | | | | | | | | | | | | |
| December 31, 2025 |
| | Operating Leases | | Finance Leases | | Total |
| |
| Gross lease liabilities | $ | 106,914 | | | $ | 14,917 | | | $ | 121,831 | |
| Less: imputed interest | (17,662) | | | (2,631) | | | (20,293) | |
| Present value of lease liabilities | 89,252 | | | 12,286 | | | 101,538 | |
| Less: current portion of lease liabilities | (12,655) | | | (1,544) | | | (14,199) | |
| Total long-term lease liabilities | $ | 76,597 | | | $ | 10,742 | | | $ | 87,339 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.