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Leases | 12 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Operating Leases | Leases As discussed in Note 1 to our consolidated financial statements, we adopted ASU 2016-02, Leases (Topic 842) of the Codification, as of January 1, 2019. The new standard requires leases with durations greater than twelve months to be recognized on the balance sheet. Our 2018 and 2017 financial statements have been recast to reflect the retrospective application of the new standard. Operating lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, we use the rate implicit in the lease to discount lease payments to present value. For leases that do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees. For facility leases, we account for the lease and non-lease components as a single lease component. The table below presents the lease-related assets and liabilities recorded on our consolidated balance sheets as of December 31, 2019 and 2018 (in millions):
|  |  |  | As of December 31,
|  |  |  | 2019 |  | 2018
Assets |  | Classification on Balance Sheet |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 912 |  |  | $ | 1,056 |
Finance lease assets |  | Property and equipment, net |  | 171 |  |  | 181 |
Total lease assets |  |  |  | $ | 1,083 |  |  | $ | 1,237 |
Liabilities |  | Classification on Balance Sheet |  |  |  |
Current: |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 128 |  |  | $ | 133 |
Finance lease liabilities |  | Current maturities of long-term debt and finance lease obligations |  | 31 |  |  | 18 |
Long-term: |  |  |  |  |  |
Operating lease liabilities |  | Long-term operating lease liabilities |  | 690 |  |  | 798 |
Finance lease liabilities |  | Long-term debt and finance lease obligations |  | 58 |  |  | 89 |
Total lease liabilities |  |  |  | $ | 907 |  |  | $ | 1,038 |
|  |  |  | As of December 31,
|  |  |  | 2019 |  | 2018
Weighted average remaining lease term (in years) |  |  |  |
Operating leases |  | 11 |  |  | 11 |
Finance leases |  | 3 |  |  | 4 |
Weighted average discount rate |  |  |  |
Operating leases |  | 5.95 | % |  | 5.95 | %
Finance leases |  | 4.75 | % |  | 4.73 | %
Flight Equipment Leases We operated a fleet of 259 aircraft as of December 31, 2019. Of our fleet, 41 aircraft were under operating leases and six aircraft were under finance leases. Our aircraft leases generally have long durations with remaining terms of one month to six years. The majority of aircraft operating leases can be renewed at rates based on fair market value at the end of the lease term for one or two years. None of our aircraft operating leases have variable rent payments. We have purchase options for 41 of our aircraft leases at the end of their lease terms. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception. Facility Leases Our facility leases are primarily for space at the airports we serve. These leases are classified as operating leases and reflect our use of passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices. We generally lease space directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. The remaining terms of our airport leases vary from eight months to 15 years. Our leases at certain airports contain provisions for periodic adjustments of rental rates based on the operating costs of the airports or the frequency of use of the facilities. Because of the variable nature of the rates, these leases are not recorded as operating lease assets and operating lease liabilities on our consolidated balance sheets. We also have leases for our corporate offices, training center, and various hangars and airport support facilities at our focus cities. Other Ground and Property Equipment We lease certain IT assets, ground support equipment, and various other pieces of equipment. The lease terms of our ground support equipment are less than 12 months, while the amount of other equipment we have is not significant. Lease Costs The table below presents certain information related to our lease costs during the years ended December 31, 2019, 2018, and 2017 (in millions):
|  | 2019 |  | 2018 |  | 2017
Operating lease cost |  | $ | 180 |  |  | $ | 185 |  |  | $ | 180 |
Short-term lease cost |  | 2 |  |  | 2 |  |  | 2 |
Finance lease cost: |  |  |  |  |  |
Amortization of assets |  | 9 |  |  | 10 |  |  | 10 |
Interest on lease liabilities |  | 3 |  |  | 3 |  |  | 4 |
Variable lease cost |  | 391 |  |  | 379 |  |  | 358 |
Sublease income |  | (19 | ) |  | (15 | ) |  | (14 | )
Total net lease cost |  | $ | 566 |  |  | $ | 564 |  |  | $ | 540 |
Other Information The table below presents supplemental cash flow information related to leases during the years ended December 31, 2019, 2018, and 2017 (in millions):
|  | 2019 |  | 2018 |  | 2017
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 136 |  |  | $ | 151 |  |  | $ | 150 |
Operating cash flows for finance leases |  | 5 |  |  | 5 |  |  | 6 |
Financing cash flows for finance leases |  | 17 |  |  | 17 |  |  | 16 |
Lease Commitments The table below presents scheduled future minimum lease payments for operating and finance leases recorded on our consolidated balance sheets, as of December 31, 2019 (in millions):
|  | As of December 31, 2019
|  | Operating Leases |  | Finance Leases
2020 |  | $ | 128 |  |  | $ | 35 |
2021 |  | 122 |  |  | 39 |
2022 |  | 114 |  |  | 9 |
2023 |  | 104 |  |  | 9 |
2024 |  | 95 |  |  | 5 |
Thereafter |  | 565 |  |  | — |
Total minimum lease payments |  | 1,128 |  |  | 97 |
Less: amount of lease payment representing interest |  | (310 | ) |  | (8 | )
Present value of future minimum lease payment |  | 818 |  |  | 89 |
Less: current obligations under leases |  | (128 | ) |  | (31 | )
Long-term lease obligations |  | $ | 690 |  |  | $ | 58 |
We did not have any lease commitments that have not yet commenced as of December 31, 2019.

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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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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