Lease Commitments

12 Months Ended

Dec. 31, 2011

Leases [Abstract]

Lease Commitments

Note 8

Lease Commitments

Certain noncancelable leases are classified as capital leases, and the leased assets are included as part of “Properties, plant and equipment, at cost” on the Consolidated Balance Sheet. Such leasing arrangements involve crude oil production and processing equipment, service stations, bareboat charters, office buildings, and other facilities. Other leases are classified as operating leases and are not capitalized. The payments on such leases are recorded as expense. Details of the capitalized leased assets are as follows:

	At December 31
	2011		2010
Upstream	$	585	$	561
Downstream		316		316
All Other		–		169
Total		901		1,046
Less: Accumulated amortization		568		573
Net capitalized leased assets	$	333	$	473

     Rental expenses incurred for operating leases during 2011, 2010 and 2009 were as follows:

	Year ended December 31
	2011		2010*		2009*
Minimum rentals	$	892	$	931	$	933
Contingent rentals		11		10		7
Total		903		941		940
Less: Sublease rental income		39		41		41
Net rental expense	$	864	$	900	$	899

* Prior years have been adjusted to exclude cost of certain charters from rental expenses.

     Contingent rentals are based on factors other than the passage of time, principally sales volumes at leased service stations. Certain leases include escalation clauses for adjusting rentals to reflect changes in price indices, renewal options ranging up to 25 years, and options to purchase the leased property during or at the end of the initial or renewal lease period for the fair market value or other specified amount at that time.

     At December 31, 2011, the estimated future minimum lease payments (net of noncancelable sublease rentals) under operating and capital leases, which at inception had a noncancelable term of more than one year, were as follows:

	At December 31
	Operating		Capital
	Leases		Leases
Year:  2012		693		70
2013		632		47
2014		523		32
2015		475		21
2016		393		13
Thereafter		793		68
Total	$	3,509	$	251
Less: Amounts representing interest and executory costs				(55	)
Net present values				196
Less: Capital lease obligations included in short-term debt				(68	)
Long-term capital lease obligations			$	128