6. Lease and Other Commitments and Contingencies The Company leases certain property, plant and equipment under long-term lease agreements. Property, plant, and equipment under capital leases are reflected on the Companys balance sheet in property and equipment. The Company entered into new capital lease obligations totaling $31 million, $5 million, and $51 million during fiscal 2018, 2017, and 2016, respectively, with various lease expiration dates through 2027. The Company records amortization of capital leases in Cost of goods sold in the Consolidated Statement of Income. Assets under operating leases are not recorded on the Companys balance sheet. Operating leases expire at various dates in the future with certain leases containing renewal options. The Company had minimum lease payments or contingent rentals of $29 million and $27 million and asset retirement obligations of $10 million and $9 million as of fiscal 2018 and 2017, respectively. Total rental expense from operating leases was $72 million, $67 million, and $60 million in fiscal 2018, 2017, and 2016, respectively. Future minimum lease payments for capital leases and non-cancellable operating leases with initial terms in excess of one year as of fiscal year end 2018 are as follows: Capital Leases Operating Leases 2019 $ 37 $ 67 2020 32 56 2021 27 51 2022 24 44 2023 10 37 Thereafter 19 165 149 $ 420 Less: amount representing interest (14 ) Present value of net minimum lease payments $ 135 The Company has entered into a series of sale-leaseback transactions, pursuant to which it sold certain facilities and is leasing these facilities back. The Company has a total deferred gain on these sale-leaseback transactions of $21 million at the end of fiscal 2018, and is amortizing this over the respective lease of the facility. The Company also has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business. Litigation The Company is party to various legal proceedings in addition to the above involving routine claims which are incidental to its business. Although the Companys legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its financial position, results of operations or cash flows. Collective Bargaining Agreements At the end of fiscal 2018, we employed approximately 24,000 employees, and approximately 18% of those employees are covered by collective bargaining agreements. The majority of these agreements are due for renegotiation in fiscal 2019. Our relations with employees under collective bargaining agreements remain satisfactory and there have been no significant work stoppages or other labor disputes during the past three years.