Leases
We lease ocean transport vessels, tugboats, barges, pipelines, railcars, service station sites, computers, office buildings, corporate aircraft, land and other facilities and equipment. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices, as well as renewal options and/or options to purchase the leased property. There are no significant restrictions imposed on us by the leasing agreements with regard to dividends, asset dispositions or borrowing ability. Our capital lease obligations relate primarily to the lease of an oil terminal in the United Kingdom. The lease obligation is subject to foreign currency translation adjustments each reporting period. The total net PP&E recorded for capital leases was $206 million and $17 million at December 31, 2013 and 2012, respectively.
Future minimum lease payments as of December 31, 2013, for capital lease obligations and operating lease obligations having initial or remaining payments due under noncancelable leases were:
|
| | | | | |
| Millions of Dollars |
| Capital Lease Obligations | Operating Lease Obligations |
| | |
2014 | $ | 19 |
| 522 |
|
2015 | 15 |
| 437 |
|
2016 | 14 |
| 289 |
|
2017 | 16 |
| 245 |
|
2018 | 13 |
| 197 |
|
Remaining years | 196 |
| 355 |
|
Total | 273 |
| 2,045 |
|
Less: income from subleases* | — |
| 112 |
|
Net minimum lease payments | $ | 273 |
| 1,933 |
|
Less: amount representing interest | 74 |
| |
Capital lease obligations | $ | 199 |
| |
*Includes $37 million related to subleases to related parties. | |
Operating lease rental expense for the years ended December 31 was:
|
| | | | | | | | | |
| Millions of Dollars |
| 2013 |
| | 2012 |
| | 2011 |
|
| | | | | |
Minimum rentals | $ | 572 |
| | 554 |
| | 576 |
|
Contingent rentals | 7 |
| | 8 |
| | 5 |
|
Less: sublease rental income | 133 |
| | 93 |
| | 97 |
|
| $ | 446 |
| | 469 |
| | 484 |
|
