LEASE OBLIGATIONS
We lease aircraft, airport terminals, maintenance facilities, ticket offices and other property and equipment from third parties. Rental expense for operating leases, which is recorded on a straight-line basis over the life of the lease term, totaled approximately $1.1 billion for each of the years ended December 31, 2013, 2012 and 2011. Amounts due under capital leases are recorded as liabilities, while assets acquired under capital leases are recorded as property and equipment. Amortization of assets recorded under capital leases is included in depreciation and amortization expense. Our airport terminal leases include contingent rents, which vary based upon: facility usage, enplanements, aircraft weight and other factors. Many of our aircraft, facility and equipment leases include rental escalation clauses and/or renewal options. Our leases do not include residual value guarantees and we are not the primary beneficiary in or have other forms of variable interest with the lessor of the leased assets. As a result, we have not consolidated any of the entities that lease to us.
The following tables summarize, as of December 31, 2013, our minimum rental commitments under capital leases and noncancelable operating leases (including certain aircraft flown by Contract Carriers) with initial or remaining terms in excess of one year:
Capital Leases
|
| | | |
Years Ending December 31, (in millions) | Total |
2014 | $ | 165 |
|
2015 | 158 |
|
2016 | 143 |
|
2017 | 100 |
|
2018 | 54 |
|
Thereafter | 74 |
|
Total minimum lease payments | 694 |
|
Less: amount of lease payments representing interest | (197 | ) |
Present value of future minimum capital lease payments | 497 |
|
Less: current obligations under capital leases | (98 | ) |
Long-term capital lease obligations | $ | 399 |
|
Operating Leases
|
| | | | | | | | | |
Years Ending December 31, (in millions) | Delta Lease Payments(1) | Contract Carrier Aircraft Lease Payments(2) | Total |
2014 | $ | 1,079 |
| $ | 350 |
| $ | 1,429 |
|
2015 | 1,028 |
| 328 |
| 1,356 |
|
2016 | 900 |
| 286 |
| 1,186 |
|
2017 | 785 |
| 241 |
| 1,026 |
|
2018 | 635 |
| 196 |
| 831 |
|
Thereafter | 5,442 |
| 224 |
| 5,666 |
|
Total minimum lease payments | $ | 9,869 |
| $ | 1,625 |
| $ | 11,494 |
|
| |
(1) | Includes payments accounted for as construction obligations. See Note 5. |
| |
(2) | Represents the minimum lease obligations under our Contract Carrier agreements with Chautauqua Airlines, Inc. (“Chautauqua”), Compass Airlines, Inc., ExpressJet Airlines, Inc., GoJet Airlines, LLC, Shuttle America Corporation (“Shuttle America”) and SkyWest Airlines, Inc. |
