RENTALS AND LEASES

12 Months Ended

Dec. 31, 2014

13. RENTALS AND LEASES

The company leases sales and administrative office facilities, distribution centers, research and manufacturing facilities, as well as vehicles and other equipment under operating leases. Total rental expense under the company’s operating leases was $237 million in 2014, $217 million in 2013 and $183 million in 2012. As of December 31, 2014, identifiable future minimum payments with non-cancelable terms in excess of one year were:

MILLIONS

2015	$	133
2016	116
2017	103
2018	86
2019	67
Thereafter	158
Total	$	663

The company enters into operating leases for vehicles whose non-cancelable terms are one year or less in duration with month-to-month renewal options. These leases have been excluded from the table above. The company estimates payments under such leases will approximate $58 million in 2015. These vehicle leases have guaranteed residual values that have historically been satisfied by the proceeds on the sale of the vehicles.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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