Most leases have initial terms of up to 20 years, and contain one or more renewal options, generally for five- or 10-year periods. The leases provide for minimum rentals, and addi- tional rentals based on our operations of the leased property. The total minimum lease payments above include $718 mil- lion representing obligations of consolidated subsidiaries that are non-recourse to Marriott International, Inc. Rent expense consists of: The provision for income taxes consists of: non-U.S. subsidiaries ($203 million as of December 28, 2001) because we consider these earnings to be permanently invested. These earnings could become subject to additional taxes if remitted as dividends, loaned to us or a U.S. affiliate, or if we sell our interests in the affiliates. We cannot practically estimate the amount of additional taxes that might be payable on the unremitted earnings. Our long-term debt at December 28, 2001, and December 29, 2000, consisted of the following: The current tax provision does not reflect the benefits attributable to us relating to our ESOP of $101 million in 2001 and $109 million in 2000 or the exercise of employee stock options of $55 million in 2001, $42 million in 2000 and  $44 million in 1999. The taxes applicable to other comprehen- sive income are not material. A reconciliation of the U.S. statutory tax rate to our effective income tax rate follows: The debt is unsecured with the exception of $13 million, which is secured by real estate. In April 1999, January 2000 and January 2001, we filed  “universal shelf” registration statements with the Securities  and Exchange Commission in the amount of $500 million, $300 million and $300 million, respectively. As of December 28, 2001, we had offered and sold to the public $600 million of debt securities under these registration statements, leaving a balance of $500 million available for future offerings. In January 2001, we issued, through a private placement, $300 million of 7 percent Series E Notes due 2008, and received net proceeds of $297 million. We agreed to make and complete a registered exchange offer to exchange these notes for publicly registered new notes on substantially identical terms, which we completed on January 15, 2002. In March 2000, we sold $300 million principal amount of 8 1 / 8 percent Series D Notes, which mature in 2005, in a public offering made under our shelf registration statements. We received net proceeds of $298 million. In September 1999, we sold $300 million principal amount of 7 7 / 8 percent Series C Notes, which mature in 2009, in a pub- lic offering made under our shelf registration statement. We received net proceeds of $296 million. Our future obligations under operating leases at December 28, 2001, are summarized below: Cash paid for income taxes, net of refunds, was $125 million in 2001, $145 million in 2000 and $150 million in 1999. Fiscal Year ($ in millions) 2002 $ 183 2003 176 2004 168 2005 163 2006 154 Thereafter 1,346 Total minimum lease payments $2,190 2001 2000 1999 U.S. statutory tax rate 35.0% 35.0% 35.0% State income taxes, net of U.S. tax benefit 3.7 3.6 3.9 Foreign income (3.3) (1.4) (0.3) Tax credits (4.1) (3.1) (5.4) Goodwill amortization 3.3 1.6 1.8 Other, net 1.6 1.1 2.3 Effective rate 36.2% 36.8% 37.3% 2001 2000 ($ in millions) Senior notes, average interest rate of 7.4% at December 28, 2001, maturing through 2009 $1,300 $1,001 Commercial paper — 827 Revolver, average interest rate of 2.5%  at December 28, 2001 923 24 Endowment deposits (non-interest bearing) 120 108 Other 108 98 2,451 2,058 Less current portion (43) (42) $2,408 $2,016 2001 2000 1999 ($ in millions) Minimum rentals $184 $171 $158 Additional rentals 91 97 102 $275 $268 $260 2001 2000 1999 ($ in millions) Current – Federal $149 $216 $117 – State 18 28 26 –F o r e i g n 21 26 24 188 270 167 Deferred – Federal (55) (2) 58 – State 1 10 12 –F o r e i g n — — — (54) 8 70 $134 $278 $237 LONG-TERM DEBT LEASES Marriott International, Inc. 2001 Annual Report 33