NOTE 7: LEASES
We utilize certain aircraft, land, facilities and equipment under capital and operating leases that expire at various dates through 2040. We leased 10% of our total aircraft fleet under operating leases as of May 31, 2013 and 10% of our total aircraft fleet under capital and operating leases as of May 31, 2012. A portion of our supplemental aircraft are leased by us under agreements that provide for cancellation upon 30 days' notice. Our leased facilities include national, regional and metropolitan sorting facilities and administrative buildings.
Rent expense under operating leases for the years ended May 31 was as follows (in millions):
| 2013 | 2012 | 2011 | |||||||
| Minimum rentals | $ | 1,287 | $ | 1,279 | $ | 1,273 | |||
| Contingent rentals(1) | 123 | 133 | 145 | ||||||
| $ | 1,410 | $ | 1,412 | $ | 1,418 | ||||
| (1) | Contingent rentals are based on equipment usage. | ||||||||
A summary of future minimum lease payments under noncancelable operating leases with an initial or remaining term in excess of one year at May 31, 2013 is as follows (in millions):
| Operating Leases | ||||||||||
| Aircraft | Total | |||||||||
| and Related | Facilities | Operating | ||||||||
| Equipment | and Other | Leases | ||||||||
| 2014 | $ | 462 | $ | 733 | $ | 1,195 | ||||
| 2015 | 448 | 694 | 1,142 | |||||||
| 2016 | 453 | 560 | 1,013 | |||||||
| 2017 | 391 | 751 | 1,142 | |||||||
| 2018 | 326 | 444 | 770 | |||||||
| Thereafter | 824 | 3,916 | 4,740 | |||||||
| Total | $ | 2,904 | $ | 7,098 | $ | 10,002 | ||||
Property and equipment recorded under capital leases and future minimum lease payments under capital leases were immaterial at May 31, 2013. The weighted-average remaining lease term of all operating leases outstanding at May 31, 2013 was approximately seven years. While certain of our lease agreements contain covenants governing the use of the leased assets or require us to maintain certain levels of insurance, none of our lease agreements include material financial covenants or limitations.
We make payments under certain leveraged operating leases that are sufficient to pay principal and interest on certain pass-through certificates. The pass-through certificates are not our direct obligations, nor do we guarantee them.
We are the lessee in a series of operating leases covering a portion of our leased aircraft. The lessors are trusts established specifically to purchase, finance and lease aircraft to us. These leasing entities meet the criteria for variable interest entities. We are not the primary beneficiary of the leasing entities as the lease terms are consistent with market terms at the inception of the lease and do not include a residual value guarantee, fixed-price purchase option or similar feature that obligates us to absorb decreases in value or entitles us to participate in increases in the value of the aircraft. As such, we are not required to consolidate these entities as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments shown above.