Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
12 Months Ended
Dec. 31, 2016
Leases [Abstract]  
Leases
LEASES

During the years ended December 31, 2016, 2015 and 2014, we recognized rental expense for all operating leases of $85.8 million, $40.6 million and $19.1 million, respectively, related primarily to office space, land sites and LNG vessel time charters. Our land site leases for the Sabine Pass 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 (1)
2017
$
129,000

2018
106,519

2019
102,451

2020
83,418

2021
21,651

Thereafter
96,814

Total
$
539,853

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

Capital Leases

In December 2015, we entered into a lease agreement for tug services related to the CCL Project that was accounted for as a capital lease. As of December 31, 2016, 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
2017
$

2018
4,980

2019
9,960

2020
9,988

2021
9,960

Thereafter
164,426

Total
$
199,314