Leases (Tables)

12 Months Ended

May 31, 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 period ended May 31, 2020 (in millions):

	2020
Operating lease cost(1)	$	2,668
Finance lease cost:
Amortization of right-of-use assets		18
Interest on lease liabilities		12
Total finance lease cost		30
Short-term lease cost		197
Variable lease cost(1)		1,160
Net lease cost	$	4,055

⁽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 accompanying consolidated statements of income.

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

	2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,608
Operating cash flows paid for interest portion of finance leases		14
Financing cash flows paid for principal portion of finance leases		84
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,915
Right-of-use assets obtained in exchange for new finance lease liabilities	$	484

Schedule of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

	2020
Operating leases:
Operating lease right-of-use assets, net	$	13,917
Current portion of operating lease liabilities		1,923
Operating lease liabilities		12,195
Total operating lease liabilities	$	14,118
Finance leases:
Net property and equipment	$	480
Current portion of long-term debt		51
Long-term debt, less current portion		434
Total finance lease liabilities	$	485
Weighted-average remaining lease term
Operating leases		9.9
Finance leases		32.0
Weighted-average discount rate
Operating leases		3.19	%
Finance leases		3.58	%

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 May 31, 2020 is as follows (in millions):

	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2021	$	250		$	2,099		$	2,349		$	67		$	2,416
2022		233			2,007			2,240			26			2,266
2023		198			1,789			1,987			25			2,012
2024		102			1,563			1,665			24			1,689
2025		69			1,365			1,434			81			1,515
Thereafter		245			6,661			6,906			646			7,552
Total lease payments		1,097			15,484			16,581			869			17,450
Less imputed interest		(92	)		(2,371	)		(2,463	)		(384	)		(2,847	)
Present value of lease liability	$	1,005		$	13,113		$	14,118		$	485		$	14,603

Schedule of Rent Expense Under Operating Leases

The following table is a summary of the Company’s net rental expense for operating leases for the years ended May 31, 2019 and 2018 (in millions):

	2019		2018
Minimum rentals	$	2,875	$	2,913
Contingent rentals(1)		222		194
	$	3,097	$	3,107

^{(1) Contingent rentals are based on equipment usage.}

Schedule of Future Minimum Lease Payments, Operating Leases

Future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2019 were as follows (in millions):

	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