began depreciating upon reaching substantial completion and the assets related to Corpus Christi Pipeline began depreciating upon completion of the construction. Impairment expense and loss on disposal of assets decreased during the year ended December 31, 2018 compared to the years ended December 31, 2017 and 2016. The impairment expense and loss on disposal of assets recognized during the year ended December 31, 2018 related to the write down of prepaid assets. The impairment expense and loss on disposal of assets recognized during the years ended December 31, 2017 and 2016 related to write down of assets used in non-core operations outside of our liquefaction activities. The impairment expense and loss on disposal of assets recognized during the year ended December 31, 2017 also included $6 million related to damaged infrastructure as an effect of Hurricane Harvey. We expect our operating costs and expenses to generally increase in the future upon Train 5 of the SPL Project achieving substantial completion, although certain costs will not proportionally increase with the number of operational Trains as cost efficiencies will be realized, as well as upon Trains 1 through 3 of the CCL Project becoming operational. Interest expense, net of capitalized interest, increased during the year ended December 31, 2018 compared to the year ended December 31, 2017, as a result of increased outstanding debt (before unamortized premium, discount and debt issuance costs, net) from $26.1 billion as of December 31, 2017 to $29.2 billion as of December 31, 2018 primarily due to increased borrowings under the CCH Credit Facility, as well as a decrease in the portion of total interest costs that could be capitalized as additional Trains of the SPL Project completed construction between the periods. For the years ended December 31, 2018 and 2017, we incurred $1.7 billion and $1.5 billion of total interest cost, respectively, of which we capitalized $803 million and $779 million, respectively, which was primarily related to the construction of the SPL Project and the CCL Project. Loss on modification or extinguishment of debt decreased during the year ended December 31, 2018, as compared to the year ended December 31, 2017. Loss on modification or extinguishment of debt recognized in 2018 was attributable to the incurrence of third party fees and write off of unamortized debt issuance costs of (1) $15 million recognized in June 2018 upon amendment and restatement of the CCH Credit Facility and (2) $12 million recognized in September 2018 upon termination of approximately $1.2 billion of commitments under the CQP Credit Facilities in connection with the issuance of the 2026 CQP Senior Notes. Loss on modification or extinguishment of debt recognized in 2017 was attributable to the write-offs of debt issuance costs of (1) $42 million in March 2017 upon termination of the remaining available balance of $1.6 billion under the SPL Credit Facilities in connection with the issuance of the 2028 SPL Senior Notes and the 2037 SPL Senior Notes; (2) $33 million in May 2017 upon the prepayment of approximately $1.4 billion of outstanding borrowings under the CCH Credit Facility in connection with the issuance of the 2027 CCH Senior Notes; and (3) $25 million in September 2017 related to the prepayment of $1.5 billion of the outstanding indebtedness under the CQP Credit Facilities in connection with the issuance of the 2025 CQP Senior Notes. Derivative gain, net increased during the year ended December 31, 2018 compared to the year ended December 31, 2017, primarily due to a favorable shift in the long-term forward LIBOR curve between the periods. During the year ended December 31, 2018, we also received $5 million of proceeds in June 2018 upon the termination of interest rate swaps associated with the amendment and restatement of the CCH Credit Facility and $28 million of proceeds in October 2018 upon the termination of the interest rate swaps (“CQP Interest Rate Derivatives”) previously held to hedge a portion of the variable interest payments on its CQP Credit Facilities. During the year ended December 31, 2017, we paid $7 million upon the termination of interest rate swaps associated with the termination of the SPL Credit Facilities and a $13 million in May 2017 in conjunction with the termination of approximately $1.4 billion of commitments under the CCH Credit Facility. 55 Year Ended December 31, (in millions) 2018 2017 Change 2016 Change Interest expense, net of capitalized interest $ 875 $ 747 $ 128 $ 488 $ 259 Loss on modification or extinguishment of debt 27 100 (73) 135 (35) Derivative loss (gain), net (57 ) (7 ) (50 ) 10 (17 ) Other income (48) (18) (30) — (18) Total other expense $ 797 $ 822 $ (25 ) $ 633 $ 189 2018 vs. 2017 Other expense (income)