Financing obligations, weighted-average imputed interest rate

[Table of](#i7d20a63dbc7f4057897188cf4f4b9871_7) [Contents](#i7d20a63dbc7f4057897188cf4f4b9871_7)Our lease liabilities were as follows (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2021 |
|   | Operating Leases |  | Finance Leases |  | Total |
| Gross lease liabilities | $ | 66,269  |  |  | $ | 25,866  |  |  | $ | 92,135  |  |
| Less: imputed interest | (7,939) |  |  | (2,113) |  |  | (10,052) |  |
| Present value of lease liabilities | 58,330  |  |  | 23,753  |  |  | 82,083  |  |
| Less: current portion of lease liabilities | (6,349) |  |  | (8,083) |  |  | (14,432) |  |
| Total long-term lease liabilities | $ | 51,981  |  |  | $ | 15,670  |  |  | $ | 67,651  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | June 30, 2022 |
|   | Operating Leases |  | Finance Leases |  | Total |
| Gross lease liabilities | $ | 69,341  |  |  | $ | 20,426  |  |  | $ | 89,767  |  |
| Less: imputed interest | (8,735) |  |  | (2,009) |  |  | (10,744) |  |
| Present value of lease liabilities | 60,606  |  |  | 18,417  |  |  | 79,023  |  |
| Less: current portion of lease liabilities | (6,707) |  |  | (5,792) |  |  | (12,499) |  |
| Total long-term lease liabilities | $ | 53,899  |  |  | $ | 12,625  |  |  | $ | 66,524  |  |

Note 4 — COMMITMENTS AND CONTINGENCIESCommitmentsThe following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2022 (in millions): 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | Six Months Ended December 31, |  | Year Ended December 31, |  |   |  |   |
|   | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | Thereafter |  | Total |
| Long-term debt principal and interest | $ | 2,303  |  |  | $ | 5,536  |  |  | $ | 8,940  |  |  | $ | 5,280  |  |  | $ | 4,187  |  |  | $ | 67,529  |  |  | $ | 93,775  |  |
| Operating lease liabilities | 3,966  |  |  | 7,856  |  |  | 7,360  |  |  | 6,796  |  |  | 6,226  |  |  | 37,137  |  |  | 69,341  |  |
| Finance lease liabilities, including interest | 3,184  |  |  | 4,630  |  |  | 2,226  |  |  | 1,337  |  |  | 1,201  |  |  | 7,848  |  |  | 20,426  |  |
| Financing obligations, including interest (1) | 229  |  |  | 464  |  |  | 463  |  |  | 456  |  |  | 463  |  |  | 7,179  |  |  | 9,254  |  |
| Leases not yet commenced | 545  |  |  | 1,711  |  |  | 2,324  |  |  | 2,350  |  |  | 2,381  |  |  | 22,512  |  |  | 31,823  |  |
| Unconditional purchase obligations (2) | 3,110  |  |  | 7,088  |  |  | 6,208  |  |  | 4,927  |  |  | 4,342  |  |  | 9,404  |  |  | 35,079  |  |
| Other commitments (3)(4) | 1,898  |  |  | 2,229  |  |  | 1,492  |  |  | 1,051  |  |  | 1,132  |  |  | 11,234  |  |  | 19,036  |  |
| Total commitments | $ | 15,235  |  |  | $ | 29,514  |  |  | $ | 29,013  |  |  | $ | 22,197  |  |  | $ | 19,932  |  |  | $ | 162,843  |  |  | $ | 278,734  |  |

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1)Includes non-cancellable financing obligations for fulfillment, sortation, and data center facilities. Excluding interest, current financing obligations of $196 million and $251 million are recorded within “Accrued expenses and other” and $6.2 billion and $6.8 billion are recorded within “Other long-term liabilities” as of December 31, 2021 and June 30, 2022. The weighted-average remaining term of the financing obligations was 18.8 years and 18.4 years and the weighted-average imputed interest rate was 3.2% as of December 31, 2021 and June 30, 2022.(2)Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content that are not reflected on the consolidated balance sheets and certain products offered in our Whole Foods Market stores. For those digital media content agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified.(3)Includes the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, asset retirement obligations, and liabilities associated with digital media content agreements with initial terms greater than one year.(4)Excludes approximately $3.3 billion of accrued tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.13
