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LEASES | 12 Months Ended
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Dec. 31, 2016
Leases [Abstract] |
LEASES | LEASES The Company's fleet included 51 aircraft on capital lease as of December 31, 2016, compared with 28 aircraft on capital lease, including one B717, as of December 31, 2015. Amounts applicable to these aircraft that are included in property and equipment were:
(in millions) |  | 2016 |  | 2015
Flight equipment |  | $ | 923 |  |  | $ | 435 |
Less: accumulated amortization |  | 82 |  |  | 29 |
|  | $ | 841 |  |  | $ | 406 |
Total rental expense for operating leases, both aircraft and other, charged to operations in 2016, 2015, and 2014 was $932 million, $909 million, and $931 million, respectively. The majority of the Company’s terminal operations space, as well as 83 aircraft, were under operating leases at December 31, 2016. For aircraft operating leases and for terminal operations leases, expense is recorded on a straight-line basis and included in Aircraft rentals and in Landing fees and other rentals, respectively, in the Consolidated Statement of Income. Future minimum lease payments under capital leases and noncancelable operating leases and rentals to be received under subleases with initial or remaining terms in excess of one year at December 31, 2016, were:
(in millions) |  | Capital leases |  | Operating leases (b) |  | Subleases |  | LFMP facility lease* |  | Operating leases, net
2017 |  | $ | 80 |  |  | $ | 671 |  |  | $ | (103 | ) |  | $ | 24 |  |  | $ | 592 |
2018 |  | 80 |  |  | 562 |  |  | (102 | ) |  | 25 |  |  | 485 |
2019 |  | 78 |  |  | 491 |  |  | (97 | ) |  | 25 |  |  | 419 |
2020 |  | 78 |  |  | 377 |  |  | (78 | ) |  | 26 |  |  | 325 |
2021 |  | 74 |  |  | 232 |  |  | (41 | ) |  | 26 |  |  | 217 |
Thereafter |  | 353 |  |  | 715 |  |  | (26 | ) |  | 608 |  |  | 1,297 |
Total minimum lease payments |  | $ | 743 |  |  | $ | 3,048 |  |  | $ | (447 | ) |  | $ | 734 |  |  | $ | 3,335 |
Less amount representing interest |  | 128 |  |  |  |  |  |  |  |  |
Present value of minimum lease payments (a) |  | 615 |  |  |  |  |  |  |  |  |
Less current portion |  | 58 |  |  |  |  |  |  |  |  |
Long-term portion |  | $ | 557 |  |  |  |  |  |  |  |  |
* See Note 4 for further details |  |  |  |  |  |  |  |  |  |
(a) Excludes lease incentive obligation of $66 million. (b) Includes a portion of the Company's Construction obligation that has not yet been placed into service as of December 31, 2016. See Note 4 for further information. The aircraft leases generally can be renewed for one to five years at rates based on fair market value at the end of the lease term. Most aircraft leases have purchase options at or near the end of the lease term at fair market value, generally limited to a stated percentage of the lessor’s defined cost of the aircraft. On July 9, 2012, the Company signed an agreement with Delta Air Lines, Inc. and Boeing Capital Corp. to lease or sublease all 88 of AirTran's B717s to Delta at agreed-upon lease rates. The first converted B717 was delivered to Delta in September 2013, and as of December 31, 2016, the Company had delivered all B717s to Delta. A total of 76 of the B717s are on operating lease, ten are owned, and two are on capital lease. The Company paid the majority of the costs to convert the aircraft to the Delta livery and perform certain maintenance checks prior to the delivery of each aircraft. The agreement to pay these conversion and maintenance costs is a “lease incentive” under applicable accounting guidance. The sublease terms for the 76 B717s on operating lease and the two B717s on capital lease coincide with the Company's remaining lease terms for these aircraft from the original lessor, which range from approximately two to seven years. The leasing of the ten B717s that are owned by the Company is subject to certain conditions, and the lease terms are for up to six years, after which Delta will have the option to purchase the aircraft at the then-prevailing market value. The ten owned B717s are accounted for as sales type leases, the two B717s classified by the Company as capital leases are accounted for as direct financing leases, and the remaining 76 subleases are accounted for as operating leases with Delta. There are no contingent payments and no significant residual value conditions associated with the transaction. The accounting for this transaction was based on the guidance provided for lease transactions. The Company recorded an initial charge of approximately $137 million during third quarter 2012, representing the remaining estimated cost, at the scheduled date of delivery of each B717 to Delta (including the conversion, maintenance, and other contractual costs to be incurred), of the Company's lease of the 76 B717s that are accounted for as operating leases, net of the future sublease income from Delta and the remaining unfavorable aircraft lease liability established as of the acquisition date. During 2014, the Company recorded an additional $22 million in expense for its revised estimate of conversion costs for these B717s, and an additional $9 million associated with the extension of time between when the Company removed the aircraft from revenue service, on December 28, 2014, and when they entered the conversion process. The charges recorded by the Company for this transaction were included as a component of Acquisition and integration costs in the Company's Consolidated Statement of Income and were included as a component of Other, net in Cash flows from operating activities in the Company's Consolidated Statement of Cash Flows, and the corresponding liability for this transaction, which was not material as of December 31, 2016 or 2015, is included as a component of Current liabilities and Other noncurrent liabilities in the Company's Consolidated Balance Sheet.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6455398&loc=d3e45280-112737 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6452660&loc=d3e36991-112694 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6453985&loc=d3e41499-112717 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph (Note 1,3) -URI http://asc.fasb.org/extlink&oid=6584154&loc=d3e38371-112697 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6851643&loc=d3e12069-110248 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6453985&loc=d3e41502-112717 + Details
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