Leased Facilities

12 Months Ended

Dec. 31, 2015

11. Leased Facilities

At December 31, 2015, the Corporation and its consolidated subsidiaries held noncancelable operating charters and leases covering drilling equipment, tankers, service stations and other properties with minimum undiscounted lease commitments totaling $4,877 million as indicated in the table. Estimated related rental income from noncancelable subleases is $32 million.

	Lease Payments Under Minimum Commitments			Related
	Drilling Rigs			Sublease
	and Related			Rental
	Equipment	Other	Total	Income
	(millions of dollars)

2016	827	826	1,653	7
2017	408	595	1,003	6
2018	134	421	555	2
2019	89	255	344	2
2020	77	188	265	2
2021 and beyond	86	971	1,057	13
Total	1,621	3,256	4,877	32

Net rental cost under both cancelable and noncancelable operating leases incurred during 2015, 2014 and 2013 were as follows:

			2015	2014	2013
			(millions of dollars)

Rental cost
	Drilling rigs and related equipment		1,853	1,763	1,424
	Other		2,120	2,314	2,417
		Total	3,973	4,077	3,841
	Less sublease rental income		44	52	44
Net rental cost			3,929	4,025	3,797

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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