LEASES

Certain administrative and production facilities and equipment are leased under long-term agreements. Most leases contain renewal options for varying periods, and certain leases include options to purchase the leased property during or at the end of the lease term. Leases generally require the Company to pay for insurance, taxes and maintenance of the property. Leased capital assets included in net property, plant and equipment, primarily buildings and improvements, were $32 million and $17 million at September 30, 2018 and 2017, respectively.

Other facilities and equipment are leased under arrangements that are accounted for as operating leases. Total rental expense for continuing and discontinued operations for the fiscal years ended September 30, 2018, 2017 and 2016 was $467 million, $502 million and $402 million, respectively.

Future minimum capital and operating lease payments and the related present value of capital lease payments at September 30, 2018 were as follows (in millions):



	Capital Leases			Operating Leases
2019	$	5		$	348
2020	6			284
2021	6			208
2022	15			152
2023	2			111
After 2023	9			97
Total minimum lease payments	43			$	1,200
Interest	(7		)
Present value of net minimum lease payments	$	36