Leases

We lease ocean transport vessels, tugboats, barges, pipelines, railcars, service station sites, computers, office buildings, corporate aircraft, land and other facilities and equipment. Certain leases include escalation clauses for adjusting rental payments to reflect changes in price indices, as well as renewal options and/or options to purchase the leased property. There are no significant restrictions imposed on us by the leasing agreements with regard to dividends, asset dispositions or borrowing ability. Our capital lease obligations relate primarily to the lease of an oil terminal in the United Kingdom. The lease obligation is subject to foreign currency translation adjustments each reporting period. The total net PP&E recorded for capital leases was $208 million and $231 million at December 31, 2016 and 2015, respectively.

Future minimum lease payments as of December 31, 2016, for operating and capital lease obligations were:



	Millions of Dollars
	Capital Lease Obligations		Operating Lease Obligations

2017	$	26	404
2018	19		362
2019	18		276
2020	14		200
2021	14		85
Remaining years	150		229
Total	241		1,556
Less: income from subleases	—		60
Net minimum lease payments	$	241	1,496
Less: amount representing interest	53
Capital lease obligations	$	188

Operating lease rental expense for the years ended December 31 was:



	Millions of Dollars
	2016		2015	2014

Minimum rentals	$	641	641	570
Contingent rentals	6		6	8
Less: sublease rental income	95		136	135
	$	552	511	443