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The future minimum lease payments to be received from non-
cancelable capital leases (direct financing and leveraged leases), net
of nonrecourse loan payments related to leveraged leases and allow-
ances for doubtful accounts, along with expected receipts relating
to operating leases for the periods shown at December31, 2015, are
as follows:
(dollars in millions)
Years
Capital
Leases
Operating
Leases
2016 $ 93 $ 128
2017 94 103
2018 52 82
2019 44 51
2020 72 23
Thereafter 430 12
Total $ 785 $ 399
As Lessee
We lease certain facilities and equipment for use in our operations
under both capital and operating leases. Total rent expense under
operating leases amounted to $3.2billion in 2015, $2.7billion in 2014
and $2.6billion in 2013, respectively.
During March 2015, we completed a transaction with American Tower
pursuant to which American Tower acquired the exclusive rights to
lease and operate approximately 11,300 of our wireless towers for an
upfront payment of $5.0billion. We have subleased capacity on the
towers from American Tower for a minimum of 10 years at current
market rates, with options to renew. Under this agreement, total rent
payments amounted to $0.2billion for the year ended December31,
2015. We expect to make minimum future lease payments of approxi-
mately $2.6billion. We continue to include the towers in Plant, property
and equipment, net in our consolidated balance sheets and depreciate
them accordingly. At December31, 2015, $0.5billion of towers were
included in Plant, property and equipment, net. See Note2 for addi-
tional information.
Amortization of capital leases is included in Depreciation and amortiza-
tion expense in the consolidated statements of income. Capital lease
amounts included in Plant, property and equipment are as follows:
(dollars in millions)
At December31, 2015 2014
Capital leases $ 421 $ 319
Less accumulated amortization (221) (171)
Total $ 200 $ 148
The aggregate minimum rental commitments under noncancelable
leases for the periods shown at December31, 2015, are as follows:
(dollars in millions)
Years
Capital
Leases
Operating
Leases
2016 $ 302 $ 2,744
2017 278 2,486
2018 187 2,211
2019 97 1,939
2020 45 1,536
Thereafter 159 7,297
Total minimum rental commitments 1,068 $ 18,213
Less interest and executory costs 111
Present value of minimum lease payments 957
Less current installments 271
Long-term obligation at December31, 2015 $ 686
55Verizon Communications Inc. and Subsidiaries
Notes to Consolidated Financial Statements continued