LEASES

Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment, primarily buildings and improvements, were $17 million and $23 million at September 30, 2017 and 2016, respectively.

Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for continuing and discontinued operations for the fiscal years ended September 30, 2017, 2016 and 2015 was $502 million, $402 million and $413 million, respectively.

Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30, 2017 were as follows (in millions):



	Capital Leases			Operating Leases
2018	$	4		$	315
2019	3			237
2020	3			160
2021	2			96
2022	2			61
After 2022	9			85
Total minimum lease payments	23			$	954
Interest	(4		)
Present value of net minimum lease payments	$	19