Annual report pursuant to Section 13 and 15(d)

Commitments

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Commitments
 12 Months Ended
Dec. 31, 2011
Commitments [Abstract]  
Commitments [Text Block]

Note 23: Commitments

 

A portion of our capital equipment and certain facilities are 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 $178 million in 2011 ($124 million in 2010 and $120 million in 2009).

 

Minimum rental commitments under all non-cancelable leases with an initial term in excess of one year were as follows as of December 31, 2011 (in millions):

Year Payable  
2012 $ 183
2013   142
2014   112
2015   81
2016   53
2017and thereafter   136
Total $ 707

Commitments for construction or purchase of property, plant and equipment totaled $4.7 billion as of December 31, 2011 ($4.6 billion as of December 25, 2010), substantially all of which will be due within the next year. Other purchase obligations and commitments totaled approximately $1.0 billion as of December 31, 2011 (approximately $600 million as of December 25, 2010). Other purchase obligations and commitments include payments due under various types of licenses and agreements to purchase goods or services, 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 and IMFT/IMFS. For further information on these contractual commitments, see “Note 11: Equity Method and Cost Method Investments.”