Southwest Airlines 2002 Annual Report Download - page 62

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SOUTHWEST AIRLINES CO. 2002 10-K | 43
8. Leases
The Company had seven aircraft classified as capital leases at December 31, 2002. The amounts
applicable to these aircraft included in property and equipment were:
(In thousands) 2002 2001
Flight equipment $ 165,467 $ 165,085
Less accumulated depreciation 106,876 99,801
$ 58,591 $ 65,284
Total rental expense for operating leases
charged to operations in 2002, 2001, and
2000 was $371.4 million, $358.6 million, and
$330.7 million, respectively. The majority of
the Company’s terminal operations space, as
well as 90 aircraft, were under operating
leases at December 31, 2002. Future mini-
mum lease payments under capital leases
and noncancelable operating leases with
initial or remaining terms in excess of one
year at December 31, 2002, were:
(In thousands) Capital Leases Operating Leases
2003 $ 17,751 $ 281,042
2004 17,651 263,343
2005 23,509 233,028
2006 13,379 189,498
2007 13,379 175,905
After 2006 52,016 1,459,961
Total minimum lease payments 137,685 $ 2,602,777
Less amount representing interest 37,122
Present value of minimum lease
payments 100,563
Less current portion 9,657
Long-term portion $ 90,906
The aircraft leases generally can be
renewed at rates based on fair market value
at the end of the lease term for one to five
years. Most aircraft leases have purchase
options at or near the end of the lease term at
fair market value, generally limited to a stated
percentage of the lessor’s defined cost of the
aircraft.