Lessee:
The minimum rental payments called for by the lease over the lease term; plus

any guarantee by the lessee of the residual value of the leased property at the end of the lease term; and

any penalty required to be paid by the lessee for failure to renew or extend the lease at the end of the lease term.

If a bargain purchase option exists, then only the minimum rental payments and the bargain purchase option are included in the lease payments.

Lessor:

The minimum lease payments for the lessee as described above and any residual value or rental payments beyond the lease term guaranteed by a third party unrelated to the lessee or lessor.
(KPMG LLP)