Leases and Other Commitment

12 Months Ended

Dec. 31, 2016

LEASES AND OTHER COMMITMENTS

The Company’s leases are generally for equipment and warehouse space. Rent expense on all operating leases was (in millions): 2016-$176; 2015-$189; 2014-$183. During 2016, 2015 and 2014, the Company entered into less than $1 million in capital lease agreements.

At December 31, 2016, future minimum annual lease commitments under non-cancelable operating and capital leases were as follows:



(millions)	Operating leases		Capital leases
2017	$	172	$	1
2018	143		1
2019	104		1
2020	71		—
2021	66		—
2022 and beyond	69		—
Total minimum payments	$	625	$	3
Amount representing interest			—
Obligations under capital leases			3
Obligations due within one year			(1		)
Long-term obligations under capital leases			$	2

The Company has provided various standard indemnifications in agreements to sell and purchase business assets and lease facilities over the past several years, related primarily to pre-existing tax, environmental, and employee benefit obligations. Certain of these indemnifications are limited by agreement in either amount and/or term and others are unlimited. The Company has also provided various “hold harmless” provisions within certain service type agreements. Because the Company is not currently aware of any actual exposures associated with these indemnifications, management is unable to estimate the maximum potential future payments to be made. At December 31, 2016, the Company had not recorded any liability related to these indemnifications.