Delta Airlines 2015 Annual Report Download - page 83
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Please find page 83 of the 2015 Delta Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TableofContents
Thefollowingtablessummarizeourminimumrentalcommitmentsundercapitalleasesandnoncancelableoperatingleases(includingcertainaircraftflownby
regionalcarriers)withinitialorremainingtermsinexcessofoneyearfortheyearssucceedingDecember31,2015:
Capital Leases
(inmillions) Total
2016 $ 183
2017 114
2018 56
2019 41
2020 29
Thereafter 39
Totalminimumleasepayments 462
Less:amountofleasepaymentsrepresentinginterest (79)
Presentvalueoffutureminimumcapitalleasepayments 383
Less:currentobligationsundercapitalleases (148)
Long-termcapitalleaseobligations $ 235
Operating Leases
(inmillions) DeltaLeasePayments
(1)
ContractCarrier
AircraftLease
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
Totalminimumleasepayments $ 10,908 $ 1,853 $ 12,761
(1) Includespaymentsaccountedforasconstructionobligations.
(2) RepresentstheminimumleaseobligationsunderourcontractcarrieragreementswithCompassAirlines,LLC,ExpressJetAirlines,Inc.,GoJetAirlines,LLC,ShuttleAmericaCorporation
(“ShuttleAmerica”)andSkyWestAirlines,Inc.
JFK Construction Obligation
In2015,wecompletedourredevelopmentprojectatNewYork-JFK'sTerminal4tofacilitateconvenientconnectionsforourpassengersandimprove
coordinationwithourSkyTeamalliancepartners.Terminal4isoperatedbyJFKInternationalAirTerminalLLC(“IAT”),aprivateparty,underitsleasewiththe
PortAuthorityofNewYorkandNewJersey(“PortAuthority”).InDecember2010,weenteredintoa33-yearagreementwithIAT(“Sublease”)tosubleasespace
inTerminal4.Also,in2010,thePortAuthorityissuedapproximately$800millionprincipalamountofspecialprojectbondstofundthemajorityoftheproject.
Wemanagedtheprojectandboretheconstructionrisk,includingcostoverruns.Werecordedanassetforprojectcosts(e.g.,design,permitting,laborandother
generalconstructioncosts),regardlessoffundingsource,andaconstructionobligationequaltoprojectcostsfundedbypartiesotherthanus.Ourrentalpayments
reducetheconstructionobligationandresultintherecordingofinterestexpense,calculatedusingtheeffectiveinterestmethod.AsofDecember31,2015,wehave
recorded$748millionasafixedassetandarelatedconstructionobligation,respectively.
Wehaveanequity-methodinvestmentintheentitywhichownsIAT,oursublessoratTerminal4.TheSubleaserequiresustopaycertainfixedmanagement
fees.WedeterminedtheinvestmentisavariableinterestentityandassessedwhetherwehaveacontrollingfinancialinterestinIAT.OurrightsundertheSublease,
withrespecttomanagementofTerminal4,areconsistentwithrightsgrantedtoananchortenantunderastandardairportlease.Accordingly,wedonotconsolidate
theentityinwhichwehaveaninvestmentinourConsolidatedFinancialStatements.
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