Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
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").
