The lease term is the fixed non-cancellable term of the lease plus:

all periods covered by bargain renewal options;

all periods for which failure to renew would impose on the lessee a penalty sufficiently large that renewal appears reasonably assured;

all periods covered by ordinary renewal options where the lessee has undertaken to guarantee the lessor’s debt related to the leased property;

all periods covered by ordinary renewal options preceding the date on which a bargain purchase option is exercisable; and

all periods representing renewals or extensions of the lease at the lessor’s option. (KPMG LLP)