CAPITAL AND OPERATING LEASES

Lessee — The Company leases various assets under capital and operating leases, including coal railcars, office buildings, a warehouse, computers, vehicles and other equipment. The lease arrangements expire at various dates through 2046.

Future minimum lease payments under non-cancelable leases at December 31, 2013 were:



	Capital Leases		Operating Leases
	(In millions)
2014	$	8	$	35
2015	8		31
2016	3		27
2017	—		25
2018	—		20
Thereafter	—		92
Total minimum lease payments	$	19	$	230
Less imputed interest	1
Present value of net minimum lease payments	18
Less current portion	7
Non-current portion	$	11

Rental expense for operating leases was $34 million in 2013, $36 million in 2012, and $40 million in 2011.

Lessor - Capital Lease — The Company leases a portion of its pipeline system to the Vector Pipeline through a capital lease contract that expires in 2020, with renewal options extending for five years. The Company owns a 40% interest in the Vector Pipeline. In addition, the Company has an energy services agreement, a portion of which is accounted for as a capital lease. The agreement expires in 2019, with a three or five year renewal option. The components of the net investment in the capital leases at December 31, 2013, were as follows:



	(In millions)
2014	$	12
2015	12
2016	12
2017	12
2018	12
Thereafter	19
Total minimum future lease receipts	79
Residual value of leased pipeline	40
Less unearned income	(40		)
Net investment in capital lease	79
Less current portion	(5		)
	$	74