Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

LEASES

We are the lessee of LNG vessels leased under time charters (“vessel charters”) as well as tug vessels, office space and facilities, land sites and equipment.

Future annual minimum lease payments for operating and finance leases as of March 31, 2025 are as follows (in millions): 

Years Ending December 31,	Operating Leases		Finance Leases
2025	$	546	$	85
2026	610		111
2027	516		113
2028	348		115
2029	259		115
Thereafter	1,030		483
Total lease payments (1)	3,309		1,022
Less: Interest	(580)		(261)
Present value of lease liabilities	$	2,729	$	761

(1)Does not include approximately $2.7 billion of legally binding minimum payments for leases executed as of March 31, 2025 that will commence in future periods, consisting primarily of vessel charters, with fixed minimum lease terms of up to 15 years.

The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases:

	March 31, 2025		December 31, 2024
	Operating Leases	Finance Leases	Operating Leases	Finance Leases
Weighted-average remaining lease term (in years)	7.1	9.0	7.0	8.8
Weighted-average discount rate (1)	5.1%	6.8%	5.0%	7.4%

(1)The weighted average discount rate is impacted by certain finance leases that 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):

	Three Months Ended March 31,
	2025		2024
Right-of-use assets obtained in exchange for operating lease liabilities	$	199	$	446
Right-of-use assets obtained in exchange for finance lease liabilities	237		—

LNG Vessel Subleases

We sublease certain LNG vessels under charter to third parties while retaining our existing obligation to the original lessor. All of our sublease arrangements have been assessed as operating leases. The following table shows the sublease income recognized in other revenues on our Consolidated Statements of Operations (in millions):

	Three Months Ended March 31,
	2025		2024
Fixed income	$	23	$	98
Variable income	12		7
Total sublease income	$	35	$	105

As of March 31, 2025, the aggregate future annual minimum sublease payment to be received from LNG vessel subleases was $9 million and is expected to be received during the current fiscal year.