Leases

12 Months Ended

Dec. 31, 2021

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