Note 20: Leases

The company leases certain properties and equipment used in its operations, primarily under operating leases. Most lease agreements require minimum lease payments plus a contingent rental based on equipment usage and escalation factors. Total net rental expense incurred under operating leases amounted to $62 million in 1997, $63 million in 1996 and $81 million in 1995. Total future minimum lease payments under the terms of non-cancellable operating leases are as follows: The leases meeting the criteria for capitalization set forth in SFAS No. 13 have been classified and accounted for as capital leases. Land, building and equipment, net of accumulated depreciation, included $1 million at December 31, 1997 and 1996, respectively, for assets recorded under capitalized leases. The related obligations for these leases are included in notes payable and long-term debt, which totaled $1 million at December 31, 1997 and 1996, respectively.

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