Note 14 Leases

The Company’s lease obligations primarily relate to real estate and office equipment. Rent expense was $558 million, $602 million and $610 million in 2014, 2013 and 2012, respectively. Sublease income received by the Company on leased assets was $17 million, $22 million and $25 million in 2014, 2013 and 2012, respectively.

At December 31, 2014, future net minimum lease payments for operating leases, having initial or remaining non-cancelable lease terms in excess of one year, consisted of the following:

($ in millions)

 

2015

432

2016

361

2017

300

2018

210

2019

170

Thereafter

230

 

1,703

Sublease income

(27)

Total

1,676

At December 31, 2014, the future net minimum lease payments for capital leases and the present value of the net minimum lease payments consisted of the following:

($ in millions)

 

2015

41

2016

35

2017

24

2018

19

2019

16

Thereafter

99

Total minimum lease payments

234

Less amount representing estimated executory costs included in total minimum lease payments

(2)

Net minimum lease payments

232

Less amount representing interest

(88)

Present value of minimum lease payments

144

Minimum lease payments have not been reduced by minimum sublease rentals due in the future under non-cancelable subleases. Such minimum sublease rentals were not significant. The present value of minimum lease payments is included in “Short-term debt and current maturities of long-term debt” or “Long-term debt” in the Consolidated Balance Sheets.