CenturyLink 2015 Annual Report Download - page 197
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The future annual minimum payments under capital lease arrangements as of December 31, 2015 were as
follows:
Future
Minimum
Payments
(Dollars in
millions)
Capital lease obligations:
2016 .................................................... $ 85
2017 .................................................... 78
2018 .................................................... 76
2019 .................................................... 62
2020 .................................................... 47
2021 and thereafter ......................................... 223
Total minimum payments .................................... 571
Less: amount representing interest and executory costs ............. (153)
Present value of minimum payments ........................... 418
Less: current portion ........................................ (56)
Long-term portion .......................................... $362
Operating Leases
CenturyLink leases various equipment, office facilities, retail outlets, switching facilities, and other network
sites. These leases, with few exceptions, provide for renewal options and escalations that are either fixed or based
on the consumer price index. Any rent abatements, along with rent escalations, are included in the computation
of rent expense calculated on a straight-line basis over the lease term. The lease term for most leases includes the
initial non-cancelable term plus any term under renewal options that are reasonably assured. For the years ended
December 31, 2015, 2014 and 2013, our gross rental expense was $467 million, $446 million and $455 million,
respectively. We also received sublease rental income for the years ended December 31, 2015, 2014 and 2013 of
$12 million, $14 million and $16 million, respectively.
At December 31, 2015, our future rental commitments for operating leases were as follows:
Future
Minimum
Payments
(Dollars in
millions)
2016 ............................................ $ 301
2017 ............................................ 289
2018 ............................................ 268
2019 ............................................ 235
2020 ............................................ 209
2021 and thereafter ................................. 1,075
Total future minimum payments(1) ..................... $2,377
(1) Minimum payments have not been reduced by minimum sublease rentals of $87 million due in the future
under non-cancelable subleases.
B-89