CHEVRON CORP | 2013 | FY | 3


Lease Commitments
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
 
 
2013

 
 
2012

Upstream
$
445

 
 
$
433

Downstream
316

 
 
316

All Other

 
 

Total
761

 
 
749

Less: Accumulated amortization
523

 
 
479

Net capitalized leased assets
$
238

 
 
$
270


     
Rental expenses incurred for operating leases during 2013, 2012 and 2011 were as follows:
 
Year ended December 31
 
 
 
2013

 
 
2012

 
2011


Minimum rentals
$
1,049

 
 
$
973

 
$
892

 
Contingent rentals
1

 
 
7

 
11

 
Total
1,050

 
 
980

 
903

 
Less: Sublease rental income
25

 
 
32

 
39

 
Net rental expense
$
1,025

 
 
$
948

 
$
864

 

     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, 2013, 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

 
 
Capital

 
Leases

 
 
Leases

Year:  2014
$
798

 
 
$
45

2015
733

 
 
32

2016
594

 
 
20

2017
472

 
 
17

2018
306

 
 
17

           Thereafter
806

 
 
46

Total
$
3,709

 
 
$
177

Less: Amounts representing interest and executory costs
 
 
 
$
(37
)
Net present values
 
 
 
140

Less: Capital lease obligations
included in short-term debt
 
 
 
(43
)
Long-term capital lease obligations
 
 
 
$
97


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