Lease Commitments

12 Months Ended

Dec. 31, 2015

Certain noncancelable leases are classified as capital leases, and the leased assets are included as part of “Properties, plant and equipment, at cost” on the Consolidated Balance Sheet. Such leasing arrangements involve crude oil production and processing equipment, service stations, bareboat charters, office buildings, and other facilities. Other leases are classified as operating leases and are not capitalized. The payments on operating leases are recorded as expense. Details of the capitalized leased assets are as follows:



	At December 31
	2015		2014
Upstream	$	800	$	765
Downstream	98		97
All Other	—		—
Total	898		862
Less: Accumulated amortization	448		381
Net capitalized leased assets	$	450	$	481

Rental expenses incurred for operating leases during 2015, 2014 and 2013 were as follows:



	Year ended December 31
	2015		2014		2013
Minimum rentals	$	1,041	$	1,080	$	1,049
Contingent rentals	2		1		1
Total	1,043		1,081		1,050
Less: Sublease rental income	9		14		25
Net rental expense	$	1,034	$	1,067	$	1,025

Contingent rentals are based on factors other than the passage of time, principally sales volumes at leased service stations. Certain leases include escalation clauses for adjusting rentals to reflect changes in price indices, renewal options ranging up to 25 years, and options to purchase the leased property during or at the end of the initial or renewal lease period for the fair market value or other specified amount at that time.

At December 31, 2015, the estimated future minimum lease payments (net of noncancelable sublease rentals) under operating and capital leases, which at inception had a noncancelable term of more than one year, were as follows:



		At December 31
		Operating Leases		Capital Leases
Year	2016	$	846	$	23
	2017	689		21
	2018	554		19
	2019	420		19
	2020	311		6
	Thereafter	528		62
Total		$	3,348	$	150
Less: Amounts representing interest and executory costs				$	(53	)
Net present values				97
Less: Capital lease obligations included in short-term debt				(17		)
Long-term capital lease obligations				$	80