Delta Airlines 2015 Annual Report Download - page 83

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TableofContents
Thefollowingtablessummarizeourminimumrentalcommitmentsundercapitalleasesandnoncancelableoperatingleases(includingcertainaircraftflownby
regionalcarriers)withinitialorremainingtermsinexcessofoneyearfortheyearssucceedingDecember31,2015:
Capital Leases
(inmillions) Total
2016 $ 183
2017 114
2018 56
2019 41
2020 29
Thereafter 39
Totalminimumleasepayments 462
Less:amountofleasepaymentsrepresentinginterest (79)
Presentvalueoffutureminimumcapitalleasepayments 383
Less:currentobligationsundercapitalleases (148)
Long-termcapitalleaseobligations $ 235
Operating Leases
(inmillions) DeltaLeasePayments
(1)
ContractCarrier
AircraftLease
Payments(2) Total
2016 $ 1,258 $ 325 $ 1,583
2017 1,105 335 1,440
2018 993 314 1,307
2019 899 259 1,158
2020 814 239 1,053
Thereafter 5,839 381 6,220
Totalminimumleasepayments $ 10,908 $ 1,853 $ 12,761
(1) Includespaymentsaccountedforasconstructionobligations.
(2) RepresentstheminimumleaseobligationsunderourcontractcarrieragreementswithCompassAirlines,LLC,ExpressJetAirlines,Inc.,GoJetAirlines,LLC,ShuttleAmericaCorporation
(“ShuttleAmerica”)andSkyWestAirlines,Inc.
JFK Construction Obligation
In2015,wecompletedourredevelopmentprojectatNewYork-JFK'sTerminal4tofacilitateconvenientconnectionsforourpassengersandimprove
coordinationwithourSkyTeamalliancepartners.Terminal4isoperatedbyJFKInternationalAirTerminalLLC(“IAT”),aprivateparty,underitsleasewiththe
PortAuthorityofNewYorkandNewJersey(“PortAuthority”).InDecember2010,weenteredintoa33-yearagreementwithIAT(“Sublease”)tosubleasespace
inTerminal4.Also,in2010,thePortAuthorityissuedapproximately$800millionprincipalamountofspecialprojectbondstofundthemajorityoftheproject.
Wemanagedtheprojectandboretheconstructionrisk,includingcostoverruns.Werecordedanassetforprojectcosts(e.g.,design,permitting,laborandother
generalconstructioncosts),regardlessoffundingsource,andaconstructionobligationequaltoprojectcostsfundedbypartiesotherthanus.Ourrentalpayments
reducetheconstructionobligationandresultintherecordingofinterestexpense,calculatedusingtheeffectiveinterestmethod.AsofDecember31,2015,wehave
recorded$748millionasafixedassetandarelatedconstructionobligation,respectively.
Wehaveanequity-methodinvestmentintheentitywhichownsIAT,oursublessoratTerminal4.TheSubleaserequiresustopaycertainfixedmanagement
fees.WedeterminedtheinvestmentisavariableinterestentityandassessedwhetherwehaveacontrollingfinancialinterestinIAT.OurrightsundertheSublease,
withrespecttomanagementofTerminal4,areconsistentwithrightsgrantedtoananchortenantunderastandardairportlease.Accordingly,wedonotconsolidate
theentityinwhichwehaveaninvestmentinourConsolidatedFinancialStatements.
77