LEASES
Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment, primarily buildings and improvements, were $79 million and $96 million at September 30, 2013 and 2012, respectively.
Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for the fiscal years ended September 30, 2013, 2012 and 2011 was $470 million, $454 million and $424 million, respectively.
Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30, 2013 were as follows (in millions):
|
| | | | | | | |
| Capital Leases | | Operating Leases |
2014 | $ | 13 |
| | $ | 300 |
|
2015 | 11 |
| | 244 |
|
2016 | 8 |
| | 138 |
|
2017 | 7 |
| | 95 |
|
2018 | 14 |
| | 60 |
|
After 2018 | 25 |
| | 71 |
|
Total minimum lease payments | 78 |
| | $ | 908 |
|
Interest | (13 | ) | | |
Present value of net minimum lease payments | $ | 65 |
| | |
