Leases (Tables)

9 Months Ended

Feb. 29, 2020

Leases [Abstract]

Summary of Components of Net Lease Cost

The following table is a summary of the components of net lease cost for the periods ended February 29, 2020 (in millions):

	Three Months Ended		Nine Months Ended
	2020		2020
Operating lease cost (1)	$	675	$	2,025
Finance lease cost:
Amortization of right-of-use assets		6		12
Interest on lease liabilities		6		8
Total finance lease cost		12		20
Short-term lease cost		60		141
Variable lease cost(1)		301		850
Net lease cost	$	1,048	$	3,036

⁽¹⁾   Expenses are primarily accounted for in the “Rentals and landing fees” line item. Additional amounts related to embedded leases are accounted for in the “Purchased transportation,” “Fuel” and “Other” line items in the unaudited condensed consolidated statements of income.

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the nine months ended February 29 is as follows (in millions):

	2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,016
Operating cash flows paid for interest portion of finance leases		10
Financing cash flows paid for principal portion of finance leases		84
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,390
Right-of-use assets obtained in exchange for new finance lease liabilities	$	464

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases as of February 29 is as follows (in millions, except lease term and discount rate):

	2020
Operating leases:
Operating lease right-of-use assets, net	$	13,981
Current portion of operating lease liabilities		1,902
Operating lease liabilities		12,232
Total operating lease liabilities	$	14,134
Finance leases:
Net property and equipment	$	464
Current portion of long-term debt		35
Long-term debt, less current portion		437
Total finance lease liabilities	$	472
Weighted-average remaining lease term
Operating leases		10.0
Finance leases		33.3
Weighted-average discount rate
Operating leases		3.23	%
Finance leases		3.59	%

Summary of Future Minimum Lease Payments, Operating and Finance Leases

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at February 29, 2020 is as follows (in millions):

	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2020 (remainder)	$	38		$	413		$	451		$	31		$	482
2021		249			2,181			2,430			26			2,456
2022		234			1,941			2,175			26			2,201
2023		198			1,733			1,931			25			1,956
2024		102			1,512			1,614			24			1,638
Thereafter		314			7,757			8,071			728			8,799
Total lease payments		1,135			15,537			16,672			860			17,532
Less imputed interest		(99	)		(2,439	)		(2,538	)		(388	)		(2,926	)
Present value of lease liability	$	1,036		$	13,098		$	14,134		$	472		$	14,606

Schedule of Future Minimum Lease Payments, Operating Leases

As previously disclosed in our Annual Report and under the previous lease accounting standard, future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 would have been as follows (in millions):

	Operating Leases
	Aircraft and Related Equipment		Facilities and Other		Total Operating Leases
2020	$	288	$	2,209	$	2,497
2021		230		2,033		2,263
2022		212		1,816		2,028
2023		154		1,625		1,779
2024		58		1,428		1,486
Thereafter		85		7,977		8,062
Total	$	1,027	$	17,088	$	18,115