LeasesWe have entered into various non-cancelable operating and finance lease agreements mostly for our data centers, offices, and certain network infrastructure. Our leases have original lease periods expiring between 2026 and 2093. Many leases include one or more options to renew.
The components of lease costs are as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | $ | 549 | | | $ | 387 | | | $ | 349 | |
| Interest | 31 | | | 23 | | | 20 | |
| Operating lease cost | 2,798 | | | 2,359 | | | 2,091 | |
| Variable lease cost and other | 1,147 | | | 844 | | | 580 | |
| Total | $ | 4,525 | | | $ | 3,613 | | | $ | 3,040 | |
Impairment losses for operating lease right-of-use assets were not material for the year ended December 31, 2025. For the years ended December 31, 2024 and 2023, $385 million and $1.76 billion were recorded as impairment losses for operating lease right-of-use assets, respectively.
Supplemental balance sheet information related to lease liabilities is as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term: | | | |
| Finance leases | 15.1 years | | 13.7 years |
| Operating leases | 12.3 years | | 11.5 years |
| Weighted-average discount rate: | | | |
| Finance leases | 4.1 | % | | 3.6 | % |
| Operating leases | 4.3 | % | | 3.9 | % |
The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2025 (in millions):
| | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| 2026 | $ | 3,211 | | | $ | 344 | |
| 2027 | 3,237 | | | 97 | |
| 2028 | 3,057 | | | 97 | |
| 2029 | 2,985 | | | 88 | |
| 2030 | 2,621 | | | 86 | |
| Thereafter | 18,397 | | | 792 | |
| Total undiscounted cash flows | 33,508 | | | 1,504 | |
| Less: Imputed interest | (8,355) | | | (320) | |
| Present value of lease liabilities | $ | 25,153 | | | $ | 1,184 | |
| | | |
| Lease liabilities, current | $ | 2,213 | | | $ | 308 | |
| Lease liabilities, non-current | 22,940 | | | 876 | |
| Present value of lease liabilities | $ | 25,153 | | | $ | 1,184 | |
The table above does not include lease payments that were not fixed at commencement or lease modification. As of December 31, 2025, we have additional operating and finance leases, that have not yet commenced, with total lease obligations of approximately $103.77 billion, mostly for data centers, colocations, and network infrastructure. These operating and finance leases will commence between 2026 and 2030 with lease terms of greater than one year to 30 years.
Supplemental cash flow information related to leases is as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows for operating leases | $ | 3,189 | | | $ | 2,830 | | | $ | 2,233 | |
| Operating cash flows for finance leases | $ | 31 | | | $ | 23 | | | $ | 20 | |
| Financing cash flows for finance leases | $ | 2,524 | | | $ | 1,969 | | | $ | 1,058 | |
| Lease liabilities arising from obtaining right-of-use assets: | | | | | |
| Operating leases | $ | 7,017 | | | $ | 3,784 | | | $ | 4,370 | |
| Finance leases | $ | 613 | | | $ | 181 | | | $ | 588 | |