Commitments, pledged assets and

collateral

Lease commitments

At December 31, 2017, JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable operating leases for premises and equipment used primarily for banking purposes. Certain leases contain renewal options or escalation clauses providing for increased rental payments based on maintenance, utility and tax increases, or they require the Firm to perform restoration work on leased premises. No lease agreement imposes restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements.

The following table presents required future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2017.



Year ended December 31, (in millions)
2018	1,526
2019	1,450
2020	1,300
2021	1,029
2022	815
After 2022	3,757
Total minimum payments required	9,877
Less: Sublease rentals under noncancelable subleases	(1,034		)
Net minimum payment required	$	8,843

Total rental expense was as follows.



Year ended December 31, (in millions)
Year ended December 31, (in millions)	2017			2016			2015
Gross rental expense	$	1,853		$	1,860		$	2,015
Sublease rental income	(251		)	(241		)	(411		)
Net rental expense	$	1,602		$	1,619		$	1,604

Pledged assets

The Firm may pledge financial assets that it owns to maintain potential borrowing capacity with central banks and for other purposes, including to secure borrowings and public deposits, collateralize repurchase and other securities financing agreements, and cover customer short sales. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are identified as financial instruments owned (pledged to various parties) on the Consolidated balance sheets.

The following table presents the Firm’s pledged assets.



December 31, (in billions)	2017		2016
Assets that may be sold or repledged or otherwise used by secured parties	$	129.6	$	133.6
Assets that may not be sold or repledged or otherwise used by secured parties	67.9		53.5
Assets pledged at Federal Reserve banks and FHLBs	493.7		441.9
Total assets pledged	$	691.2	$	629.0

Total assets pledged do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. See Note 14 for additional information on assets and liabilities of consolidated VIEs. For additional information on the Firm’s securities financing activities, see Note 11. For additional information on the Firm’s long-term debt, see Note 19. The significant components of the Firm’s pledged assets were as follows.



December 31, (in billions)	2017		2016
Securities	$	86.2	$	101.1
Loans	437.7		374.9
Trading assets and other	167.3		153.0
Total assets pledged	$	691.2	$	629.0

Collateral

The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale agreements, securities borrowing agreements, customer margin loans and derivative agreements. Collateral is generally used under repurchase agreements, securities lending agreements or to cover customer short sales and to collateralize deposits and derivative agreements.

The following table presents the fair value of collateral accepted.



December 31, (in billions)	2017		2016
Collateral permitted to be sold or repledged, delivered, or otherwise used	$	968.8	$	914.1
Collateral sold, repledged, delivered or otherwise used	775.3		746.6