United Parcel Service, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASES (Tables)

LEASES (Tables)

12 Months Ended

Dec. 31, 2019

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



	Year Ended December 31,
	2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	620
Operating cash flows from finance leases	19
Financing cash flows from finance leases	140

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	810
Finance leases	$	110

The components of lease expense for the year ended December 31, 2019 are as follows (in millions):



	Year Ended December 31,
	2019
Operating lease costs	$	643
Finance lease costs:
Amortization of assets	$	73
Interest on lease liabilities	19
Total finance lease costs	92
Variable lease costs	206
Short-term lease costs	1,122
Total lease costs	$	2,063

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):



	December 31, 2019
Operating Leases:
Operating lease right-of-use assets	$	2,856

Current maturities of operating leases	$	538
Non-current operating leases	2,391
Total operating lease liabilities	$	2,929

Finance Leases:
Aircraft	$	2,087
Buildings	272
Vehicles, plant equipment, technology equipment and other	27
Accumulated amortization	(884		)
Property, plant and equipment, net	$	1,502

Current maturities of long-term debt, commercial paper and finance leases	$	181
Long-term debt and finance leases	317
Total finance lease liabilities	$	498

Weighted average remaining lease term (in years):
Operating leases	9.7
Finance leases	8.9

Weighted average discount rate:
Operating leases	2.78		%
Finance leases	4.03		%

Operating Leases Maturity Schedule

Maturities of lease liabilities as of December 31, 2019 are as follows (in millions):



	Finance Leases			Operating Leases
2020	$	199		$	619
2021	44			536
2022	39			451
2023	37			360
2024	35			256
Thereafter	259			1,267
Total lease payments	613			3,489
Less: Imputed interest	(115		)	(560		)
Total lease obligations	498			2,929
Less: Current obligations	(181		)	(538		)
Long-term lease obligations	$	317		$	2,391

Finance Leases Maturity Schedule

Maturities of lease liabilities as of December 31, 2019 are as follows (in millions):



	Finance Leases			Operating Leases
2020	$	199		$	619
2021	44			536
2022	39			451
2023	37			360
2024	35			256
Thereafter	259			1,267
Total lease payments	613			3,489
Less: Imputed interest	(115		)	(560		)
Total lease obligations	498			2,929
Less: Current obligations	(181		)	(538		)
Long-term lease obligations	$	317		$	2,391

Contractual Obligation, Fiscal Year Maturity Schedule

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



	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