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## NOTE 3—GUARANTEES 

## NOTES TO CONDENSED FINANCIAL STATEMENTS—CONTINUED 

## CHENIERE ENERGY, INC. 

Cheniere has various financial and performance guarantees and indemnifications which are issued in the normal course of business. These contracts include performance guarantees and stand-by letters of credit. Cheniere enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. As of December 31, 2019, outstanding guarantees and other assurances aggregated approximately $542 million of varying duration, consisting of parental guarantees. No liabilities were recognized under these guarantee arrangements as of December 31, 2019. 

## NOTE 4—LEASES 

Our leased assets consist primarily of office space and facilities, which are classified as operating leases. 

The following table shows the classification and location of our right-of-use assets and lease liabilities on our Condensed Balance Sheets (in millions): 

<img src='content_image/1043980.jpg'>

The following table shows the classification and location of our lease cost on our Condensed Statements of Operations (in millions): 

<img src='content_image/1043981.jpg'>

(1) Includes $3 million of variable lease costs paid to the lessor. 

Future annual minimum lease payments for operating leases as of December 31, 2019 are as follows (in millions): 

<img src='content_image/1043982.jpg'>

(1) Does not include $1 million of legally binding minimum lease payments for an office space lease which was executed as of December 31, 2019 but will commence in 2020 and has a fixed minimum lease terms of up to two years. 

