ASSETS CONSTRUCTED FOR OTHERS ASSETS CONSTRUCTED FOR OTHERS

12 Months Ended

Dec. 31, 2014

Sale Leaseback Transaction [Line Items]

Sale Leaseback Transaction Disclosure [Text Block]

NOTE 5. ASSETS CONSTRUCTED FOR OTHERS

In March 2012, the Company placed into service assets constructed for others (Terminal 6 at LAX), including a new baggage system, additional gates, new common use systems, expansion of security screening checkpoints, and a new ticket lobby, all of which were constructed for the City of Los Angeles and Los Angeles World Airports (LAWA). For accounting and financial reporting purposes, the Company is considered to be the owners of the assets constructed for others and did not qualify for sale and leaseback accounting when the non-proprietary assets were transferred to the City of Los Angeles due to the Company's continuing involvement with the project. The assets are depreciated over the life of the lease based on the straight-line method, while the liability is amortized on the effective interest method based on the lease rental payments. At December 31, 2014, the net asset was $178 million, and the liability was $174 million.

Future minimum payments related to the Terminal 6 lease are included in facility leases described in the "Commitments and Contingencies" note.