Cheniere Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Leases, Balance Sheet Location

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):



	Consolidated Balance Sheet Location	March 31, 2020		December 31, 2019
Right-of-use assets—Operating	Operating lease assets, net	$	350	$	439
Right-of-use assets—Financing	Property, plant and equipment, net	55		56
Total right-of-use assets		$	405	$	495

Current operating lease liabilities	Current operating lease liabilities	$	178	$	236
Current finance lease liabilities	Other current liabilities	1		1
Non-current operating lease liabilities	Non-current operating lease liabilities	164		189
Non-current finance lease liabilities	Non-current finance lease liabilities	58		58
Total lease liabilities		$	401	$	484

Schedule of Lease Cost, Income Statement Location

The following table shows the classification and location of our lease cost on our Consolidated Statements of Operations (in millions):



	Consolidated Statement of Operations Location	Three Months Ended March 31,
	Consolidated Statement of Operations Location	2020		2019
Operating lease cost (1)	Operating costs and expenses (2)	$	141	$	137
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization expense	1		1
Interest on lease liabilities	Interest expense, net of capitalized interest	2		2
Total lease cost		$	144	$	140


(1)	Includes $35 million and $47 million of short-term lease costs during the three months ended March 31, 2020 and 2019, respectively, and $5 million of variable lease costs paid to the lessor during each of the three months ended March 31, 2020 and 2019.

(2)

Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease.

Schedule of Maturity of Lease Liabilities

Future annual minimum lease payments for operating and finance leases as of March 31, 2020 are as follows (in millions):



Years Ending December 31,	Operating Leases (1)			Finance Leases
2020	$	158		$	8
2021	58			10
2022	23			10
2023	22			10
2024	22			10
Thereafter	166			136
Total lease payments	449			184
Less: Interest	(107		)	(125		)
Present value of lease liabilities	$	342		$	59

(1)

Does not include $2.0 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of March 31, 2020 but will commence in future period primarily in the next two years and have fixed minimum lease terms of up to seven years.

Lease, Other Quantitative Information

The following table shows the weighted-average remaining lease term (in years) and the weighted-average discount rate for our operating leases and finance leases:



	March 31, 2020		December 31, 2019
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted-average remaining lease term (in years)	9.8	18.4	8.4	18.7
Weighted-average discount rate (1)	5.0%	16.2%	5.2%	16.2%


(1)	The finance leases commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets.

The following table includes other quantitative information for our operating and finance leases (in millions):



	Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	94	$	90
Operating cash flows from finance leases	2		2
Financing cash flows from finance leases	—		—
Right-of-use assets obtained in exchange for new operating lease liabilities	8		64