All payments the lessee is obligated to make under the lease agreement, except any lessee guaranteed payments in support of lessor debt and executory costs (i.e., insurance, maintenance, and taxes). Amounts included would consist of:
-Minimum rentals over the lease term.
-Lessee guarantee of the residual value. If the lessee agrees to make up any deficiency below a stated amount, the entire stated amount must be included.
-Penalties for failure to renew; however, if the related renewal period is included in the “lease term,” the penalty amount is not included.
-Calculations for the lessor would also include any guarantee of the residual value or rental payments beyond the lease term by a financially capable unrelated party.