The average recorded investment in impaired receivables as of December 31, 2002 and 2001, was $277 and $155, respectively. Income recognition is generally suspended for receivables at the date when a full recovery of income and principal becomes doubtful. Income recognition is resumed when the receivables become contractually current and performance is demonstrated by the customer. The amount of interest income recognized on such receivables during the period in which they were considered impaired was $24 and $7 for the years ended December 31, 2002 and 2001, of which $17 and $4 was recognized on a cash basis. Interest income recognized on impaired receivables in 2000 was insignificant.

The components of investment in sales-type/financing leases at December 31 were as follows:

As of December 31, 2002 and 2001, sales-type/financing leases and operating leases attributable to aircraft financing included $1,858 and $1,499 attributable to 717 model aircraft ($597 and $692 accounted for as operating leases) and $835 and $1,030 attributable to MD-11 model aircraft ($695 and $810 accounted for as operating leases).

Aircraft financing is collateralized by security in the related asset, and the Company has not experienced problems in accessing such collateral. However, the value of the collateral is closely tied to commercial airline performance and may be subject to reduced valuation with market decline. The operating lease aircraft category primarily includes new and used jet and commuter aircraft. As of December 31, 2002 and 2001, aircraft financing operating lease equipment included $786 and $510 of equipment available for re-lease. During 2002, AMR Corporation returned 24 717s to the Company. As of December 31, 2002, two of the returned aircraft have been placed out on lease and 22 of the returned aircraft have firm commitments to be placed, subject to completion of modifications. The 22 aircraft with firm commitments are classified as equipment available for re-lease.

For the year ended December 31, 2002, impairment charges of $117 were recorded in operating earnings. This amount included a $66 charge on the 717s returned to the Company by AMR Corporation recorded during the fourth quarter of 2002. These impairments primarily resulted from deteriorated aircraft values and airline customer credit ratings for sales-type/financing lease assets and reduced estimated cash flows for operating lease assets. Impairments for the years ended December 31, 2001 and 2000, were not significant.

See Note 21 for a discussion regarding the creditworthiness of counterparties in customer and commercial financing arrangements.

Scheduled payments on customer and commercial financing are as follows:

Customer and commercial financing assets that are leased by the Company under capital leases and have been subleased to others totaled $533 and $437 as of December 31, 2002 and 2001.

Note 11 – Property, Plant and Equipment

Property, plant and equipment at December 31 consisted of the following:

Depreciation expense was $1,094, $1,140 and $1,159 for the years ended December 31, 2002, 2001 and 2000, respectively. Interest capitalized as construction-period property, plant and equipment costs amounted to $71, $72 and $70 for the years ended December 31, 2002, 2001 and 2000, respectively.

Rental expense for leased properties was $519, $318 and $280 for the years ended December 31, 2002, 2001 and 2000, respectively. These expenses, substantially all minimum rentals, are net of sublease income. Minimum rental payments under operating and capital leases with initial or remaining terms of one year or more aggregated $1,915 and $67, respectively, for the year ended December 31, 2002. Payments, net of sublease amounts, due during the next five years are as follows: