US Postal Service 2012 Annual Report Download - page 95

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2012 Report on Form 10-K United States Postal Service- 94 -
NOTE 6 — LEASES AND OTHER COMMITMENTS
LEASES
Future minimum lease payments for all non-cancellable leases as of September 30, 2012 are as follows:
Lease Obligations
(Dollars in millions)
2013 $ 723 $ 98
2014 667 92
2015 609 90
2016 541 87
2017 475 78
After 2017
3,864
214
Total Lease Obligations $ 6,879 $ 659
Less: Interest
191
Total Capital Lease Obligations
$
468
Less: Current Portion of Capital Lease Obligations
58
Noncurrent portion of capital lease obligations
$
410
Operating
Capital
Leases generally have renewal options for periods ranging from 3 to 20 years. Certain non-cancellable real
estate leases have purchase options at prices specified in the leases.
Capital leases included in buildings at September 30 were $886 million in 2012, and $898 million in 2011.
Total accumulated amortization was $563 million, and $531 million at September 30, 2012, and 2011,
respectively. Amortization expense for assets recorded as capital leases is included in “Other” in the
Statements of Operations.
Rental expense for the years ended September 30, is summarized as follows:
Rental Expense
(Dollars in millions)
Noncancelable real estate leases
$
938
$
956
$
964
GSA facilities leases*
41
42
44
Equipment and other short-term rentals
176
161
153
Total Rental Expense
$
1,155
$
1,159
$
1,161
2011
2010
*General Services Administration; leases subject to 120-day cancel lation notice.
2012
CAPITAL COMMITMENTS
At September 30, 2012, financial commitments for approved capital projects in progress are as follows:
Capital Commitments
(Dollars in millions)
2012
2011
Mail Processing Equipment
$
281
$
481
Building Improvements, Construction, and Building Purchase
301
320
Postal Support Equipment
56
75
Vehicles
6
5
Total Capital Commitments $ 644 $ 881