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

LEASES (Tables)

6 Months Ended

Jun. 30, 2019

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



	Three Months Ended June 30,		Six Months Ended June 30,
	2019		2019
Operating lease costs	$	166	$	323
Finance lease costs:
Amortization of assets	18		$	37
Interest on lease liabilities	4		9
Total finance lease costs	22		46
Variable and short-term lease costs	240		518
Total lease costs	$	428	$	887

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



	Six Months Ended June 30,
	2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	311
Operating cash flows from finance leases	9
Financing cash flows from finance leases	85

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	56

Supplemental information and balance sheet location related to leases is as follows (in millions, except lease term and discount rate):




	June 30, 2019
Operating Leases:
Operating lease right-of-use assets	$	2,477

Current maturities of operating leases	$	487
Non-current operating leases	2,026
Total operating lease liabilities	$	2,513

Finance Leases:
Property, plant and equipment, at cost	$	2,513
Accumulated amortization	961
Property, plant and equipment, net	$	1,552

Current maturities of long-term debt, commercial paper and finance leases	$	77
Long-term debt and finance leases	368
Total finance lease liabilities	$	445

Weighted average remaining lease term (in years):
Operating leases	9.2
Finance leases	10.6

Weighted average discount rate:
Operating leases	2.70		%
Finance leases	4.37		%

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

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

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