Lease Commitments
Certain noncancelable leases are classified as capital leases, and the leased assets are included as part of “Properties, plant and equipment, at cost” on the Consolidated Balance Sheet. Such leasing arrangements involve crude oil production and processing equipment, service stations, bareboat charters, office buildings, and other facilities. Other leases are classified as operating leases and are not capitalized. The payments on operating leases are recorded as expense. Details of the capitalized leased assets are as follows:
|
| | | | | | | | |
| At December 31 | |
| 2013 |
| | | 2012 |
|
Upstream | $ | 445 |
| | | $ | 433 |
|
Downstream | 316 |
| | | 316 |
|
All Other | — |
| | | — |
|
Total | 761 |
| | | 749 |
|
Less: Accumulated amortization | 523 |
| | | 479 |
|
Net capitalized leased assets | $ | 238 |
| | | $ | 270 |
|
Rental expenses incurred for operating leases during 2013, 2012 and 2011 were as follows:
|
| | | | | | | | | | | | | |
| Year ended December 31 | | |
| 2013 |
| | | 2012 |
| | 2011 |
|
|
Minimum rentals | $ | 1,049 |
| | | $ | 973 |
| | $ | 892 |
| |
Contingent rentals | 1 |
| | | 7 |
| | 11 |
| |
Total | 1,050 |
| | | 980 |
| | 903 |
| |
Less: Sublease rental income | 25 |
| | | 32 |
| | 39 |
| |
Net rental expense | $ | 1,025 |
| | | $ | 948 |
| | $ | 864 |
| |
Contingent rentals are based on factors other than the passage of time, principally sales volumes at leased service stations. Certain leases include escalation clauses for adjusting rentals to reflect changes in price indices, renewal options ranging up to 25 years, and options to purchase the leased property during or at the end of the initial or renewal lease period for the fair market value or other specified amount at that time.
At December 31, 2013, the estimated future minimum lease payments (net of noncancelable sublease rentals) under operating and capital leases, which at inception had a noncancelable term of more than one year, were as follows:
|
| | | | | | | | |
| At December 31 | |
| Operating |
| | | Capital |
|
| Leases |
| | | Leases |
|
Year: 2014 | $ | 798 |
| | | $ | 45 |
|
2015 | 733 |
| | | 32 |
|
2016 | 594 |
| | | 20 |
|
2017 | 472 |
| | | 17 |
|
2018 | 306 |
| | | 17 |
|
Thereafter | 806 |
| | | 46 |
|
Total | $ | 3,709 |
| | | $ | 177 |
|
Less: Amounts representing interest and executory costs | | | | $ | (37 | ) |
Net present values | | | | 140 |
|
Less: Capital lease obligations
included in short-term debt | | | | (43 | ) |
Long-term capital lease obligations | | | | $ | 97 |
|
