Operating and Direct Financing Leases (Tables)

12 Months Ended

Dec. 31, 2015

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

As at December 31, 2015, the total estimated future minimum rental payments to be received and paid under the lease contracts are as follows:


	Head Lease		Sublease
Year	Receipts ⁽¹⁾		Payments⁽¹⁾⁽²⁾
2016		21,242		24,113
2017		21,242		24,113
2018		21,242		24,113
2019		21,242		24,113
2020		21,242		24,113
Thereafter		175,337		199,072

Total	$	281,547	$	319,637

(1)

The Head Leases are fixed-rate operating leases while the Subleases have a small variable-rate component. As at December 31, 2015, the Teekay Tangguh Subsidiary had received $228.8 million of aggregate Head Lease receipts and had paid $163.7 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 and, as at December 31, 2015, $3.8 million and $40.4 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 is 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,
	2015			2014
	$			$
Total minimum lease payments to be received		855,655			936,164
Estimated unguaranteed residual value of leased properties		203,465			203,465
Initial direct costs and other		428			461
Less unearned revenue		(375,419	)		(435,137	)

Total		684,129			704,953
Less current portion		(26,542)			(20,823	)

Long-term portion		657,587			684,130