Certain noncancelable leases are classified as capital leases,
and the leased assets are included as part of "Properties, plant
and equipment, at cost." Such leasing arrangements involve
tanker charters, crude oil production and processing equipment,
service stations, office buildings, and other facilities.
Other leases are classified as operating leases and are not
capitalized. The payments
on such leases are recorded as
expense. Details of the capitalized leased assets are as follows:
|
At December 31 |
|
2008 |
2007* |
| Upstream |
$491 |
$482 |
| Downstream |
$399 |
$551 |
| Chemical and all other |
171 |
171 |
| Total |
1,061 |
1,204 |
| Less: Accumulated amortization |
522 |
628 |
| Net capitalized leased assets |
$539 |
$576 |
Rental expenses incurred for operating leases during 2008, 2007 and 2006 were as follows:
|
Year ended December 31 |
|
2008 |
2007 |
2006 |
| Minimum rentals |
$2,984 |
$2,419 |
$2,326 |
| Contingent rentals |
6 |
6 |
6 |
| Total |
2,990 |
2,425 |
2,332 |
| Less: Sublease rental income |
41 |
30 |
33 |
| Net rental expense |
$2,949 |
$2,395 |
$2,299 |
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, 2008, 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 Leases |
Capital Leases |
| Year: |
|
|
| 2009 |
$503 |
$97 |
| 2010 |
463 |
77 |
| 2011 |
372 |
77 |
| 2012 |
315 |
84 |
| 2013 |
288 |
59 |
| Thereafter |
947 |
154 |
| Total |
$2,888 |
$548 |
| Less: Amounts representing interest and executory costs |
|
(110) |
| Net present values |
|
438 |
| Less: Capital lease obligations included in short-term debt |
|
(97) |
| Long-term capital lease obligations |
|
$341 |