NOTE 10. LEASES

Leases are primarily operating leases for leaseholds on energy-from-waste facilities, as well as for trucks and automobiles, office space and machinery and equipment. Some of these operating leases have renewal options. Expense under operating leases was $29 million, $31 million, and $30 million, for the years ended December 31, 2012, 2011, and 2010, respectively.

The following is a schedule, by year, of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2012 (in millions):



	2013		2014		2015		2016		2017		Thereafter		Total
Future Minimum Rental Payments	$	22	$	21	$	21	$	19	$	18	$	125	$	226
Non-Recourse Portion of Future Minimum Rental Payments	$	15	$	15	$	14	$	13	$	12	$	104	$	173

Future minimum rental payment obligations include $173 million of future non-recourse rental payments that relate to energy-from-waste facilities. Of this amount $101 million is supported by third-party commitments to provide sufficient service revenues to meet such obligations. The remaining $72 million is related to an energy-from-waste facility at which we serve as the operator and directly market one half of the facility’s disposal capacity. This facility currently generates sufficient revenues from short-, medium-, and long-term contracts to meet rental payments. We anticipate renewing the contracts or entering into new contracts to generate sufficient revenues to meet remaining future rental payments.