Operating and Direct Financing Leases (Tables)

12 Months Ended

Dec. 31, 2014

Estimated Future Minimum Rental Payments to be Received and Paid Under Lease Contracts

As at December 31, 2014, the total estimated future minimum rental payments to be received and paid under the lease contracts are as follows:


Year	Head Lease Receipts ⁽¹⁾		Sublease Payments⁽¹⁾⁽²⁾
2015		22,188		24,113
2016		21,242		24,113
2017		21,242		24,113
2018		21,242		24,113
2019		21,242		24,113
Thereafter		196,579		223,185

Total	$	303,735	$	343,750

(1)

The Head Leases are fixed-rate operating leases while the Subleases have a small variable-rate component. As at December 31, 2014, the Teekay Tangguh Subsidiary had received $206.6 million of aggregate Head Lease receipts and had paid $139.6 million of aggregate Sublease payments. The portion of the Head Lease receipts that have not been recognized into earnings, is deferred and amortized on a straight line basis over the lease terms. As at December 31, 2014, $2.8 million and $44.1 million of Head Lease receipts had been deferred and included in accrued liabilities and other long-term liabilities, respectively, in the Company’s consolidated balance sheets.

(2)	The amount of payments under the Subleases are updated annually to reflect any changes in the lease payments due to changes in tax law.

Net Investments in Direct Financing Leases

The following table lists the components of the net investments in direct financing leases:


	December 31,			December 31,
	2014			2013
	$			$
Total minimum lease payments to be received		936,164			1,024,187
Estimated unguaranteed residual value of leased properties		203,465			203,465
Initial direct costs and other		461			1,379
Less unearned revenue		(435,137	)		(501,769	)

Total		704,953			727,262
Less current portion		20,823			21,545

Long-term portion		684,130			705,717