LEASES

Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment, primarily buildings and improvements, were $68 million and $41 million at September 30, 2011 and 2010, respectively.

Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for the fiscal years ended September 30, 2011, 2010 and 2009 was $424 million, $389 million and $403 million, respectively.

Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30, 2011 were as follows (in millions):


	Capital			Operating
	Leases			Leases
2012	$	13		$	289
2013		11			231
2014		11			170
2015		9			122
2016		6			80
After 2016		36			100

Total minimum lease payments		86		$	992

Interest		(16	)

Present value of net minimum lease payments	$	70