Annual report pursuant to Section 13 and 15(d)

Leases

v3.3.1.900
Leases
12 Months Ended
Dec. 31, 2015
Leases [Abstract]  
Leases
LEASES

During the years ended December 31, 2015, 2014 and 2013, we recognized rental expense for all operating leases of $24.3 million, $19.1 million and $13.9 million, respectively, related primarily to office space, land sites and LNG vessel time charters. Our land site leases for the Sabine Pass LNG terminal and the Corpus Christi LNG terminal have initial terms varying up to 30 years with multiple options to renew up to an additional 60 years.
 
Future annual minimum lease payments, excluding inflationary adjustments, for operating leases are as follows (in thousands): 
Years Ending December 31,
Operating Leases
2016
$
99,973

2017
101,484

2018
101,076

2019
101,039

2020
83,959

Thereafter (1)
74,077

Total
$
561,608

 
(1)
Includes certain lease option renewals that are reasonably assured.

Capital Leases

During the year ended December 31, 2015, we entered into a lease agreement for tug services related to our CCL Project that was accounted for as a capital lease. As of December 31, 2015, we did not have any assets recorded under this obligation due to the service term of this lease commencing in 2018. We will record assets acquired under capital leases, net of accumulated amortization, in property, plant and equipment, net, on our Consolidated Balance Sheets upon commencement of the service term, and the related amortization expense on our Consolidated Statements of Operations.

Future annual minimum lease payments, excluding inflationary adjustments, for capital leases are as follows (in thousands): 
Years Ending December 31,
Capital Leases
2016
$

2017

2018
19,920

2019
39,840

2020
39,840

Thereafter
697,208

Total
$
796,808