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LEASES | 12 Months Ended
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Dec. 31, 2017
Leases [Abstract] |
LEASES | LEASES The Company's fleet included 53 aircraft on operating lease and 69 aircraft on capital lease as of December 31, 2017, compared with 83 aircraft on operating lease and 51 aircraft on capital lease, as of December 31, 2016. Amounts applicable to these aircraft on capital lease that are included in property and equipment were:
(in millions) |  | 2017 |  | 2016
Flight equipment |  | $ | 1,207 |  |  | $ | 923 |
Less: accumulated amortization |  | 172 |  |  | 82 |
|  | $ | 1,035 |  |  | $ | 841 |
Total rental expense for operating leases, both aircraft and other, charged to operations in 2017, 2016, and 2015 was $939 million, $932 million, and $909 million, respectively. The majority of the Company’s terminal operations space, as well as 144 aircraft, including 76 B717s subleased to Delta and 15 Classic aircraft grounded in September 2017, were under operating leases at December 31, 2017. For aircraft operating leases and for terminal operations leases and other real estate 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. The majority of the Company’s terminal operations space was under operating leases at December 31, 2017; however, due to the nature of airport terminal lease arrangements, most of those future lease payments are considered variable, and thus excluded from the Company’s disclosures of future minimum lease payments. 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, 2017, were:
(in millions) |  | Capital leases |  | Operating leases (b) |  | Subleases |  | Operating leases, net
2018 |  | $ | 107 |  |  | $ | 359 |  |  | $ | (102 | ) |  | $ | 257 |
2019 |  | 106 |  |  | 331 |  |  | (98 | ) |  | 233 |
2020 |  | 105 |  |  | 264 |  |  | (78 | ) |  | 186 |
2021 |  | 100 |  |  | 155 |  |  | (41 | ) |  | 114 |
2022 |  | 96 |  |  | 85 |  |  | (17 | ) |  | 68 |
Thereafter |  | 416 |  |  | 177 |  |  | (8 | ) |  | 169 |
Total minimum lease payments |  | $ | 930 |  |  | $ | 1,371 |  |  | $ | (344 | ) |  | $ | 1,027 |
Less amount representing interest |  | 150 |  |  |  |  |  |  |
Present value of minimum lease payments (a) |  | 780 |  |  |  |  |  |  |
Less current portion |  | 79 |  |  |  |  |  |  |
Long-term portion |  | $ | 701 |  |  |  |  |  |  |
* See Note 4 for further details |  |  |  |  |  |  |  |
(a) Excludes lease incentive obligation of $105 million. (b) Includes 15 remaining Classic aircraft on operating leases, which net remaining lease payments were included in the $63 million grounding charge recorded during 2017. 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 Airways' B717s to Delta at agreed-upon lease rates. 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 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. During 2017, the Company retired its remaining 87 Classic aircraft, which included 61 Classic aircraft grounded in September 2017 as part of an accelerated retirement schedule. The Company recorded a charge of $63 million related to the leased portion of the Classic fleet, representing the remaining net lease payments due and certain lease return requirements that could have to be performed on these leased aircraft prior to their return to the lessors, as of the cease-use date.

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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 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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