Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements

1. Basis of Presentation
2. Accounting Policies
3. Fair Value
4. Trading Assets
5. Available-for-Sale Investments
6. Equity Method and Cost Method Investments
7. Gains (Losses) on Other Equity Investments, Net
8. Derivative Financial Instruments
9. Concentrations of Credit Risk
10. Interest and Other, Net
11. Acquisitions
12. Divestitures
13. Goodwill
14. Identified Intangible Assets
15. Restructuring and Asset Impairment Charges
16. Borrowings
17. Retirement Benefit Plans
18. Commitments
19. Employee Equity Incentive Plans
20. Common Stock Repurchases
21. Earnings Per Share
22. Comprehensive Income
23. Taxes
24. Contingencies
25. Operating Segment and Geographic Information

Note 18: Commitments

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A portion of our capital equipment and certain facilities is under operating leases that expire at various dates through 2028. Additionally, portions of our land are under leases that expire at various dates through 2062. Rental expense was $141 million in 2008 ($154 million in 2007 and $160 million in 2006).

Minimum rental commitments under all non-cancelable leases with an initial term in excess of one year were as follows as of December 27, 2008 (in millions):

Year Payable      
       
2009   $ 106
2010     75
2011     55
2012     44
2013     24
2014 and thereafter     46
Total   $ 350

Commitments for construction or purchase of property, plant and equipment totaled $2.9 billion as of December 27, 2008 ($2.3 billion as of December 29, 2007). Other purchase obligations and commitments totaled $1.2 billion as of December 27, 2008 ($1.7 billion as of December 29, 2007). Other purchase obligations and commitments include payments due under various types of licenses, agreements to purchase raw material or other goods, as well as payments due under non-contingent funding obligations. Funding obligations include, for example, agreements to fund various projects with other companies. In addition, we have various contractual commitments with Micron, IMFT, and IMFS (see "Note 6: Equity Method and Cost Method Investments").

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