The Company leases certain aircraft and engines, including aircraft under capacity purchase agreements. As of December 31, 2020, the Company had 641 leased aircraft, with remaining terms ranging from less than one year to 12 years.
December
31
2020 2019
Operating leases:
Operating lease ROU assets
$23,982 $26,082
Current operating lease liabilities
$4,923 $5,085
Noncurrent operating lease liabilities
20,217 22,164
Total operating lease liabilities
$25,140 $27,249
Finance leases:
Property and equipment, at cost
Accumulated amortization
Property and equipment, net
Current finance lease liabilities
Noncurrent finance lease liabilities
Total finance lease liabilities
$1,716 $2,010
The components of lease expense were as follows (in millions):
$3,063 $2,862
(1,617) (1,341)
$1,446 $1,521
$300 $336
1,416 1,674
Operating lease cost
Finance lease cost:
Amortization of assets
Interest on lease liabilities
Variable lease cost
Total net lease cost
Year
Ended
December
31
2020
2019 2018
$5,829 $6,036 $5,667
276 237 234
114 129 144
5,358 7,626 7,059
$11,577 $14,028 $13,104
a. What is the right-of-use asset for operating leases as of the end of 2020?
$ 23,982
million.
b. What is the net asset recorded for finance leases?
1,446
milllion.
c. What is the lease liability balance for operating leases as of the end of 2020? What does this amount represent?
25,140
million. The amount is the Present value
of the remaining lease payments.
d. What is the amount of amortization expense recorded in 2020 for finance leases? For operating leases?
276 ✔million for finance leases.
5,715 8 million for operating leases.
e. What is the amount of interest expense recorded in 2020 for finance leases? For operating leases?
✔million for finance leases.
114
5,472 28 million for operating leases.
