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1
0. COMMITMENTS
,
CONTINGENT LIABILITIES AND LITIGATIO
N
C
ommitment
s
T
he future minimum rental payments for operating leases having initial or remaining non-cancelable leas
e
terms
i
n excess o
f
one year at June 30, 2011 are
:
(
in millions
)
20
12
2
01
3
2
0
14 2
0
1
5
2
0
1
6
T
h
e
r
eaf
t
er
To
t
al
M
i
n
i
mum renta
l
payments
....................
$
72.2
$
58.4
$
38.3
$
27.4
$
19.2
$
39.3
$
254.
8
R
ental expense relating to operating leases was
$
78.8 million,
$
80.3 million and
$
84.7 million in fisca
l
2011, 2010 an
d
2009, respect
i
ve
l
y. Su
bl
ease renta
li
ncome was not mater
i
a
lf
or any per
i
o
d
presente
dh
ere
i
n.
Legal Proceeding
s
We become involved from time-to-time in liti
g
ation and re
g
ulator
y
matters incidental to our business,
including governmental investigations, enforcement actions, personal injury claims, employment matters
,
commerc
i
a
ldi
sputes,
i
nte
ll
ectua
l
property matters,
di
sputes regar
di
ng env
i
ronmenta
l
c
l
ean-up costs,
li
t
i
gat
i
on
i
n
connection with acquisitions and divestitures, and other matters arisin
g
out of the normal conduct of ou
r
business. We intend to vigorously defend ourselves in such litigation. We do not believe that the outcome of any
pen
di
ng
li
t
i
gat
i
on w
ill h
ave a mater
i
a
l
a
d
verse e
ff
ect on t
h
e conso
lid
ate
dfi
nanc
i
a
l
statements.
O
ccasionally, we may suspect that products we manufacture, market or distribute do not meet produc
t
spec
ifi
cat
i
ons, pu
bli
s
h
e
d
stan
d
ar
d
s or regu
l
atory requ
i
rements. In suc
h
c
i
rcumstances, we
i
nvest
i
gate an
d
ta
k
e
app
ro
p
riate corrective action. Such actions can lead to
p
roduct recalls, costs to re
p
air or re
p
lace affecte
d
products, temporary interruptions in product sales, and action by regulators.
We accrue for contin
g
encies related to liti
g
ation and re
g
ulator
y
matters. We accrue an estimated los
s
contingency in our consolidated financial statements if it is probable that a liability has been incurred and th
e
a
mount o
f
t
h
e
l
oss can
b
e reasona
bl
y est
i
mate
d
. Because
li
t
i
gat
i
on
i
s
i
n
h
erent
l
y unpre
di
cta
bl
ean
d
un
f
avora
ble
resolutions can occur, assessin
g
contin
g
encies is hi
g
hl
y
sub
j
ective and requires
j
ud
g
ments about future events
.
We regularly review contingencies to determine whether our accruals are adequate. The amount of ultimate loss
may
diff
er
f
rom t
h
ese est
i
mates
.
We recognize income from the favorable outcome of litigation when we receive the associated cash o
r
a
ssets
.
We recognize estimated loss contingencies for litigation and regulatory matters and income from favorabl
e
reso
l
ut
i
on o
fli
t
i
gat
i
on
i
n
li
t
i
gat
i
on (recover
i
es)/c
h
arges, net
i
n our conso
lid
ate
d
statements o
f
earn
i
ngs.
Insurance Proceed
s
I
n fiscal 2010, we reco
g
nized $27.2 million of income related to insurance proceeds released from escro
w
f
ollowing the resolution of previously disclosed and settled securities and derivative litigation against certain of
o
ur directors and officers. This amount is comprised of
$
25.7 million received from directors’ and officers’
insurance policies reco
g
nized in liti
g
ation (recoveries)/char
g
es, net and $1.5 million of accrued interest income
recognized in interest expense, net
.
Antitrust Liti
g
ation Proceeds
I
n fiscal 2010, we recognized
$
40.8 million of income resulting from settlement of a class action antitrus
t
claim in which we were a class member. This amount is reco
g
nized in liti
g
ation (recoveries)/char
g
es, net
.
62