Leases and Commitments

12 Months Ended

Dec. 31, 2011

We have entered into operating leases for certain warehouse facilities, automobiles and equipment. The future minimum obligations under operating leases having a noncancelable term in excess of one year are as follows:



	Year Ending December 31
	(Millions of dollars)
2012	$	167
2013	136
2014	114
2015	83
2016	54
Thereafter	128
Future minimum obligations	$	682

Consolidated rental expense under operating leases was $278 million, $296 million and $284 million in 2011, 2010 and 2009, respectively.

We have entered into long-term contracts for the purchase of pulp and utilities, principally electricity. Commitments under these contracts based on current prices are $709 million in 2012, $154 million in 2013, $44 million in 2014, $17 million in 2015 and $18 million in 2016. Total commitments beyond the year 2016 are $59 million.

Although we are primarily liable for payments on the above-mentioned leases and purchase commitments, our exposure to losses, if any, under these arrangements is not material.

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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