6. Lease and Other Commitments and Contingencies

The Company leases certain property, plant and equipment under long-term lease agreements. Property, plant, and equipment under capital leases are reflected on the Company's balance sheet as owned. The Company entered into new capital lease obligations totaling $49 million, $7 million, and $29 million during fiscal 2013, 2012, and 2011, respectively, with various lease expiration dates through 2020. The Company records amortization of capital leases in Cost of goods sold in the Consolidated Statement of Operations. Assets under operating leases are not recorded on the Company's balance sheet. Operating leases expire at various dates in the future with certain leases containing renewal options. The Company had minimum lease payments or contingent rentals of $16 million and $15 million and asset retirement obligations of $6 million and $5 million as of fiscal 2013 and 2012, respectively. Total rental expense from operating leases was $53 million, $56 million, and $59 million in fiscal 2013, 2012, and 2011, respectively.

Future minimum lease payments for capital leases and noncancellable operating leases with initial terms in excess of one year as of fiscal year-end 2013, are as follows:


	Capital Leases		Operating Leases
2014	$	30	$	44
2015		33		41
2016		20		39
2017		12		34
2018		11		29
Thereafter		21		114
		127	$	301
Less: amount representing interest		(15)
Present value of net minimum lease payments	$	112

In September 2012, the Company entered into a sale-leaseback transaction pursuant to which it sold its warehouse facility located in Lawrence , Kansas. The Company received net proceeds of $20 million and resulted in the Company realizing a deferred gain of $1 million which will be offset against the future lease payments over the life of the lease.

The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company's legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its financial position, results of operations or cash flows. The Company has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business.

At the end of fiscal 2013, the Company employed over 15,000 employees. Approximately 12% of the Company's employees are covered by collective bargaining agreements. One of the ten agreements, covering approximately 30 employees, which was scheduled for renegotiation in fiscal 2013 is still being renegotiated. The remaining agreements expire after fiscal 2013. The Company's relations with employees remain satisfactory and there have been no significant work stoppages or other labor disputes during the past three years.