Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASES
Our leased assets consist primarily of LNG vessel time charters (“vessel charters”) and additionally include tug vessels, office space and facilities and land sites. All of our leases are classified as operating leases except for our tug vessels supporting the Corpus Christi LNG Terminal, which are classified as finance leases.

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):
December 31,
Consolidated Balance Sheets Location 2021 2020
Right-of-use assets—Operating Operating lease assets $ 2,102  $ 759 
Right-of-use assets—Financing Property, plant and equipment, net of accumulated depreciation 50  53 
Total right-of-use assets $ 2,152  $ 812 
Current operating lease liabilities Current operating lease liabilities $ 535  $ 161 
Current finance lease liabilities Other current liabilities 2  2 
Non-current operating lease liabilities Operating lease liabilities 1,541  597 
Non-current finance lease liabilities Finance lease liabilities 57  57 
Total lease liabilities $ 2,135  $ 817 

The following table shows the classification and location of our lease costs on our Consolidated Statements of Operations (in millions):
Consolidated Statements of Operations Location Year Ended December 31,
2021 2020 2019
Operating lease cost (a) Operating costs and expenses (1) $ 621  $ 432  $ 612 
Finance lease cost:
Amortization of right-of-use assets Depreciation and amortization expense 3  2  3 
Interest on lease liabilities Interest expense, net of capitalized interest 9  7  10 
Total lease cost $ 633  $ 441  $ 625 
(a) Included in operating lease cost:
Short-term lease costs $ 139  $ 93  $ 230 
Variable lease costs 21  16  7 
(1)Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease.

Future annual minimum lease payments for operating and finance leases as of December 31, 2021 are as follows (in millions): 
Years Ending December 31, Operating Leases (1) Finance Leases
2022 $ 600  $ 11 
2023 514  10 
2024 456  10 
2025 244  10 
2026 218  10 
Thereafter 294  117 
Total lease payments 2,326  168 
Less: Interest (250) (109)
Present value of lease liabilities $ 2,076  $ 59 
(1)Does not include approximately $1.2 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of December 31, 2021 but will commence in future periods primarily in the next year and have fixed minimum lease terms of up to 10 years.
The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases:
December 31, 2021 December 31, 2020
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted-average remaining lease term (in years) 5.6 16.7 8.2 17.7
Weighted-average discount rate (1) 3.6% 16.2% 5.4% 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):
Year Ended December 31,
2021 2020 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 483  $ 309  $ 389 
Operating cash flows from finance leases 10  10  9 
Right-of-use assets obtained in exchange for operating lease liabilities 1,736  615  235 

LNG Vessel Subcharters

From time to time, we sublease certain LNG vessels under charter to third parties while retaining our existing obligation to the original lessor. As of December 31, 2021 and 2020, we had $15 million and zero future minimum sublease payments to be received from LNG vessel subcharters. The following table shows the sublease income recognized in other revenues on our Consolidated Statements of Operations (in millions):
Year Ended December 31,
2021 2020 2019
Fixed income $ 72  $ 68  $ 122 
Variable income 37  27  22 
Total sublease income $ 109  $ 95  $ 144