Note 14 Leases

The Company’s lease obligations primarily relate to real estate and office equipment. Rent expense was $610 million, $601 million and $510 million in 2012, 2011 and 2010, respectively. Sublease income received by the Company on leased assets was $25 million, $41 million and $44 million in 2012, 2011 and 2010, respectively.

At December 31, 2012, 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:

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($ in millions)

 

2013

527

2014

435

2015

364

2016

297

2017

221

Thereafter

295

 

2,139

Sublease income

(62)

Total

2,077

At December 31, 2012, the future net minimum lease payments for capital leases and the present value of the net minimum lease payments consisted of the following:

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($ in millions)

 

2013

31

2014

28

2015

24

2016

15

2017

8

Thereafter

82

Total minimum lease payments

188

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

(2)

Net minimum lease payments

186

Less amount representing interest

(83)

Present value of minimum lease payments

103

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.