The following table is a summary of the components of net lease cost for the period ended May 31 (in millions):

	2021		2020
Operating lease cost	$	2,848	$	2,668
Finance lease cost:
Amortization of right-of-use assets		23		18
Interest on lease liabilities		17		12
Total finance lease cost		40		30
Short-term lease cost		387		197
Variable lease cost		1,318		1,160
Net lease cost	$	4,593	$	4,055

Lease expenses are primarily included in the “Rentals and landing fees” line item. Amounts related to embedded leases are included in the “Purchased transportation,” “Fuel” and “Other” line items in the accompanying consolidated statements of income.

Supplemental cash flow information related to leases for the period ended May 31 is as follows (in millions):

	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	2,750	$	2,608
Operating cash flows paid for interest portion of finance leases		16		14
Financing cash flows paid for principal portion of finance leases		75		84
Right-of-use assets obtained in exchange for new operating lease liabilities	$	3,703	$	1,915
Right-of-use assets obtained in exchange for new finance lease liabilities	$	126	$	484

Supplemental balance sheet information related to leases as of May 31 is as follows (dollars in millions):

	2021			2020
Operating leases:
Operating lease right-of-use assets, net	$	15,383		$	13,917

Current portion of operating lease liabilities		2,208			1,923
Operating lease liabilities		13,375			12,195
Total operating lease liabilities	$	15,583		$	14,118

Finance leases:
Net property and equipment	$	504		$	480

Current portion of long-term debt		96			51
Long-term debt, less current portion		429			434
Total finance lease liabilities	$	525		$	485

Weighted-average remaining lease term
Operating leases		9.9			9.9
Finance leases		30.1			32.0

Weighted-average discount rate
Operating leases		2.94	%		3.19	%
Finance leases		3.43	%		3.58	%

We utilize certain aircraft, land, facilities, retail locations and equipment under finance and operating leases that expire at various dates through 2060. We leased 3% of our total aircraft fleet under operating leases as of May 31, 2021 and 5% as of May 31, 2020. 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, retail facilities and administrative buildings.

A summary of future minimum lease payments under noncancelable operating and finance leases with an initial or remaining term in excess of one year at May 31, 2021 is as follows (in millions):

	Aircraft and Related Equipment			Facilities and Other			Total Operating Leases			Finance Leases			Total Leases
2022	$	234		$	2,403		$	2,637		$	19		$	2,656
2023		198			2,255			2,453			106			2,559
2024		102			1,986			2,088			24			2,112
2025		69			1,739			1,808			24			1,832
2026		61			1,516			1,577			23			1,600
Thereafter		184			7,358			7,542			698			8,240
Total lease payments		848			17,257			18,105			894			18,999
Less imputed interest		(66	)		(2,456	)		(2,522	)		(369	)		(2,891	)
Present value of lease liability	$	782		$	14,801		$	15,583		$	525		$	16,108

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.

As of May 31, 2021, FedEx has entered into additional leases which have not yet commenced and are therefore not part of the right-of-use asset and liability. These leases are generally for build-to-suit facilities and have undiscounted future payments of approximately $2.5 billion and will commence when FedEx gains beneficial access to the leased asset. Commencement dates are expected to be from 2022 to 2023.

FedEx Express makes 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 direct obligations of, or guaranteed by, FedEx or FedEx Express.

We are the lessee under certain operating leases covering a portion of our leased aircraft in which the lessors are trusts established specifically to purchase, finance and lease these aircraft to us. These leasing entities are variable interest entities. We are not the primary beneficiary of the leasing entities, as the lease terms are at market 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. Therefore, we are not required to consolidate any of these entities as the primary beneficiary. Our maximum exposure under these leases is included in the summary of future minimum lease payments.