Leases

12 Months Ended

Dec. 31, 2021

LEASES

The Company’s operating leases mainly related to land, offices facilities, IDC facilities and vehicles. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options that are factored into the Company’s determination of lease payments when appropriate. As of December 31, 2021, finance leases were insignificant.

As of December 31, 2021, the weighted average remaining lease term was 16.7 years and weighted average discount rate was 4.43% for the Group’s operating leases.

Operating lease costs were RMB3.0 billion and RMB3.2 billion (US$501 million) for the years ended December 31, 2020 and 2021, respectively, which excluded short-term lease costs. Short-term lease costs were RMB427 million and RMB475 million (US$75 million) for the years ended December 31, 2020 and 2021, respectively. Variable lease cost was immaterial for the years ended December 31, 2020 and 2021. For the years ended December 31, 2020 and 2021, no lease costs for operating or finance leases were capitalized.

Supplemental cash flow information related to operating leases was as follows:


	For the years ended December 31,
	2020		2021		2021
	RMB		RMB		US$
	(In millions)
Cash payments for operating leases		5,187		4,238		665
ROU assets obtained in exchange for operating lease liabilities		2,841		4,434		696

Future lease payments under operating leases as of December 31, 2021 were as follows:


	Operating leases
	RMB		US$
	(In millions)
Year ending December 31,
2022		2,946		462
2023		2,307		362
2024		1,755		275
2025		1,070		168
2026		595		93
Thereafter		603		95

Total future lease payments		9,276		1,455
Less: Imputed interest		845		131

Total lease liability balance		8,431		1,324

As of December 31, 2021, additional operating leases that have not yet commenced were immaterial.