Note 14 Leases

The Company’s lease obligations primarily relate to real estate and office equipment. Rent expense was $601 million, $510 million and $509 million in 2011, 2010 and 2009, respectively. Sublease income received by the Company on leased assets was $41 million, $44 million and $52 million in 2011, 2010 and 2009, respectively.

At December 31, 2011, 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:

(XLS:)

($ in millions)

 

2012

477

2013

401

2014

340

2015

284

2016

244

Thereafter

340

 

2,086

Sublease income

(96)

Total

1,990

At December 31, 2011, the future net minimum lease payments for capital leases and the present value of the net minimum lease payments consisted of the following:

(XLS:)

($ in millions)

 

2012

27

2013

24

2014

20

2015

15

2016

13

Thereafter

84

Total minimum lease payments

183

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

(2)

Net minimum lease payments

181

Less amount representing interest

(85)

Present value of minimum lease payments

96

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 presented in “Short-term debt and current maturities of long-term debt” or “Long-term debt” in the Consolidated Balance Sheets.

Financial review

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