Leases

The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment under capital and operating leases. A substantial number of these leases contain options that allow the Company to renew at the fair rental value on the date of renewal.

Future minimum payments under capitalized leases and non-cancelable operating leases at April 28, 2017 are:



(in millions) Fiscal Year	Capitalized Leases			Operating Leases
2018	$	6		$	215
2019	4			158
2020	4			110
2021	3			70
2022	3			41
Thereafter	8			52
Total minimum lease payments	$	28		$	646
Less amounts representing interest	(5		)	N/A
Present value of net minimum lease payments	$	23		N/A

Rent expense for all operating leases was $294 million, $269 million, and $195 million in fiscal years 2017, 2016, and 2015, respectively. The increase in fiscal year 2016 rent expense is primarily related to the Covidien acquisition.