United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

LEASES (Tables)

9 Months Ended

Sep. 30, 2019

The components of lease expense for the three and nine months ended September 30, 2019 are as follows (in millions):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019		2019
Operating lease costs	$	151	$	474
Finance lease costs:
Amortization of assets	18		$	55
Interest on lease liabilities	5		14
Total finance lease costs	23		69
Variable lease costs	69		148
Short-term lease costs	194		633
Total lease costs	$	437	$	1,324

Supplemental cash flow information related to leases is as follows (in millions):



	Nine Months Ended September 30,
	2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	455
Operating cash flows from finance leases	11
Financing cash flows from finance leases	121

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	144

Supplemental Balance Sheet

Supplemental information related to leases and location within our consolidated balance sheets are as follows (in millions, except lease term and discount rate):



	September 30, 2019
Operating Leases:
Operating lease right-of-use assets	$	2,504

Current maturities of operating leases	$	500
Non-current operating leases	2,063
Total operating lease liabilities	$	2,563

Finance Leases:
Property, plant and equipment, at cost	$	2,541
Accumulated amortization	(979		)
Property, plant and equipment, net	$	1,562

Current maturities of long-term debt, commercial paper and finance leases	$	102
Long-term debt and finance leases	364
Total finance lease liabilities	$	466

Weighted average remaining lease term (in years):
Operating leases	9.1
Finance leases	9.8

Weighted average discount rate:
Operating leases	2.77		%
Finance leases	4.23		%

Operating Leases Maturity Schedule

Maturities of lease liabilities as of September 30, 2019 are as follows (in millions):



	Finance Leases			Operating Leases
2019	$	26		$	151
2020	149			546
2021	44			463
2022	39			384
2023	37			309
Thereafter	292			1,159
Total lease payments	587			3,012
Less: Imputed interest	(121		)	(449		)
Total lease obligations	466			2,563
Less: Current obligations	(102		)	(500		)
Long-term lease obligations	$	364		$	2,063

Finance Leases Maturity Schedule

Maturities of lease liabilities as of September 30, 2019 are as follows (in millions):



	Finance Leases			Operating Leases
2019	$	26		$	151
2020	149			546
2021	44			463
2022	39			384
2023	37			309
Thereafter	292			1,159
Total lease payments	587			3,012
Less: Imputed interest	(121		)	(449		)
Total lease obligations	466			2,563
Less: Current obligations	(102		)	(500		)
Long-term lease obligations	$	364		$	2,063

Contractual Obligation, Fiscal Year Maturity Schedule

The following table sets forth the aggregate minimum lease payments under capital and operating leases (in millions) as of December 31, 2018:



	Capital Leases			Operating Leases
2019	$	158		$	578
2020	95			477
2021	42			399
2022	39			325
2023	36			262
After 2023	293			926
Total lease payments	663			2,967
Less: Imputed interest	(129		)
Total lease obligations	534
Less: Current obligations	(140		)
Long-term lease obligations	$	394