NOTE 8 — LEASES AND OTHER COMMITMENTS

Leases

At September 30, 2009, our future minimum lease payments for all noncancelable leases are as follows.

 

Lease Obligations (dollars in millions)

 

Operating

Capital

2010

$762

$99

2011

709

97

2012

639

99

2013

578

93

2014

519

87

After 2014

4,339

441

Total Lease Obligations

$7,546

$916

Less: Interest

 

325

Total Capital Lease Obligations

 

591

Less: Short-term portion of capital lease obligations

 

47

Long-term portion of capital lease obligations

 

$544

Most of these leases contain renewal options for periods ranging from 3 to 20 years. Certain non-cancelable real estate leases give us the option to purchase the facilities at prices specified in the leases.

Capital leases included in buildings were $909 million in 2009 and $916 million in 2008. Total accumulated amortization is $474 million in 2009 and $419 million in 2008. Amortization expense for assets recorded under capital leases is classified as depreciation expense, which is included in other operating expenses in the Statements of Operations.

Our total rental expense for the years ended September 30 is summarized as follows.

 

Rental Expense (dollars in millions)

 

2009

2008

2007

Non-cancelable real estate leases including related taxes

$992

$967

$927

Facilities leased from GSA subject to 120-day cancellation

43

44

46

Equipment and other short-term rentals

294

294

261

Total Rental Expense

$1,329

$1,305

$1,234