12. LEASES

Lessee Accounting

Capital leases, primarily for the right to use machinery and equipment, are included with owned plant and equipment on the consolidated balance sheet in the amount of $22.3 and $22.4 at 30 September 2017 and 2016, respectively. Related amounts of accumulated depreciation are $5.3 and $4.5, respectively.

Operating leases principally relate to real estate and also include aircraft, distribution equipment, and vehicles. Certain leases include escalation clauses, renewal, and/or purchase options. Rent expense is recognized on a straight-line basis over the minimum lease term. Rent expense under operating leases, including month-to-month agreements, was $65.8 in 2017, $67.6 in 2016, and $70.4 in 2015.

At 30 September 2017, minimum payments due under leases associated with continuing operations are as follows:



	Capital Leases		Operating Leases
2018	$	2.2	$	56.6
2019	1.8		45.8
2020	1.6		35.2
2021	3.0		27.1
2022	1.5		22.9
Thereafter	19.9		126.6
Total	$	30.0	$	314.2

The present value of the above future capital lease payments totaled $10.8. Refer to Note 15, Debt.

Included in the operating lease payments disclosed above are future minimum payments due under leases related to the Energy-from-Waste discontinued operations (i.e., Tees Valley, United Kingdom ) of approximately $2 in each of the next five years and $40 thereafter, for a total lease commitment of approximately $50. As discussed in Note 3, Discontinued Operations, during the first quarter of 2017, we recorded an accrual for these lease obligations to other noncurrent liabilities in continuing operations.

Lessor Accounting

As discussed under Revenue Recognition in Note 1, Major Accounting Policies, certain contracts associated with facilities that are built to provide product to a specific customer are required to be accounted for as leases. Lease receivables, net, are primarily included in noncurrent capital lease receivables on our consolidated balance sheets, with the remaining balance in other receivables and current assets.

The components of lease receivables were as follows:



30 September	2017			2016
Gross minimum lease payments receivable	$	1,897.0		$	2,072.6
Unearned interest income	(671.9		)	(762.7		)
Lease Receivables, net	$	1,225.1		$	1,309.9

Lease payments collected in 2017, 2016, and 2015 were $183.6, $186.0, and $146.6, respectively. These payments reduced the lease receivable balance by $92.2, $85.5, and $68.8 in 2017, 2016, and 2015, respectively.

At 30 September 2017, minimum lease payments expected to be collected are as follows:



2018	$	182.0
2019	176.4
2020	171.4
2021	165.5
2022	154.1
Thereafter	1,047.6
Total	$	1,897.0