Operating Leases (Tables)

12 Months Ended

Dec. 31, 2021

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheets as of December 31, 2021 and 2020 (in millions):


		December 31
	Classification on the Balance Sheet	2021			2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	2,426		$	2,250
Liabilities
Current
Operating	Current maturities of operating leases	$	444		$	416
Long-term operating leases
Operating	Long-term operating leases	1,991			1,848
Total lease liabilities		$	2,435		$	2,264
Weighted-average remaining lease term
Operating leases		7 years			7 years
Weighted-average discount rate
Operating leases(1)		5.08		%	5.15		%

______________

(1) Upon adoption of ASU 2016-02, discount rates used for existing leases were established as of January 1, 2019.

Schedule of Lease Costs

The table below presents certain information related to lease costs for operating leases during the years ended December 31, 2021, 2020 and 2019 (in millions):


	Year Ended December 31,
	2021		2020		2019
Operating lease cost(1)	$	454	$	337	$	363
Variable lease cost(1)	284		220		186
Total lease costs	$	738	$	557	$	549

______________(1) Expenses are included within aircraft rent, station operations, maintenance materials and repairs and other operating within the Company’s consolidated statements of operations.

Reconciliation of Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows as of December 31, 2021 (in millions) for each of the next five years and total of the remaining years to the operating lease liability recorded on the consolidated balance sheet.


	December 31, 2021
Operating Leases
Year 1	$	456
Year 2	435
Year 3	419
Year 4	396
Year 5	332
Thereafter	915
Total undiscounted minimum lease rentals	2,953
Less: amount of lease payments representing interest	(518)
Present value of future minimum lease rentals	2,435
Less: current obligations under leases	(444)
Long-term lease obligations	$	1,991