Commitments and Contingencies LEASE COMMITMENTS The Company has leases for certain facilities and equipment which expire at various dates through 2029. Some lease agreements contain standard renewal provisions that allow us to renew the lease at rates equivalent to fair market value at the end of the lease term. Under lease agreements that contain escalating rent provisions, operating lease expense is recorded on a straight-line basis over the lease term. Under lease agreements that contain rent holidays, rent expense is recorded on a straight-line basis over the entire lease term, including the period covered by the rent holiday. Operating lease expense was $76 million for the year ended December 31, 2013 and $80 million for each of the years ended December 31, 2012 and 2011. Future minimum lease payments under operating leases with initial or remaining noncancellable lease terms in excess of one year and capital leases as of December 31, 2013 are as follows (in millions): Operating Leases Capital Leases 2014 $ 55 $ 6 2015 44 6 2016 38 6 2017 30 6 2018 22 6 Thereafter 76 149 Total minimum lease payments $ 265 179 Less imputed interest at rates ranging from 1.95% to 15.42% (123 ) Present value of minimum lease payments $ 56 Of the $56 million in capital lease obligations above, $55 million is included in long-term debt payable to third parties and $1 million is included in s hort-term borrowings and current portion of long-term obligations on the Consolidated Balance Sheet as of December 31, 2013 . LEGAL MATTERS The Company is occasionally subject to litigation or other legal proceedings as set forth below. The Company does not believe that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on the results of operations, financial condition or liquidity of the Company. Robert M. Ward, et al. v. The American Bottling Company In March 2009, Robert M. Ward, et al., as plaintiffs, commenced litigation in the U.S. District Court, Central District