Crucial 2014 Annual Report Download - page 75

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73
Commitments
As of August 28, 2014, we had commitments of approximately $1.18 billion for the acquisition of property, plant and
equipment. We lease certain facilities and equipment under operating leases. Total rental expense was $57 million, $41 million
and $48 million for 2014, 2013 and 2012, respectively. Minimum future rental commitments as of August 28, 2014 were as
follows:
Operating
Lease
Commitments
2015 $ 22
2016 18
2017 14
2018 13
2019 12
2020 and thereafter 37
$ 116
Contingencies
We have accrued a liability and charged operations for the estimated costs of adjudication or settlement of various asserted
and unasserted claims existing as of the balance sheet date, including those described below. We are currently a party to other
legal actions arising from the normal course of business, none of which is expected to have a material adverse effect on our
business, results of operations or financial condition.
Rambus
On May 5, 2004, Rambus, Inc. ("Rambus") filed a complaint in the Superior Court of the State of California (San
Francisco County) against us and other DRAM suppliers which alleged that the defendants harmed Rambus by engaging in
concerted and unlawful efforts affecting Rambus DRAM by eliminating competition and stifling innovation in the market for
computer memory technology and computer memory chips. Rambus' complaint alleged various causes of action under
California state law including, among other things, a conspiracy to restrict output and fix prices, a conspiracy to monopolize,
intentional interference with prospective economic advantage, and unfair competition. Rambus sought a judgment for damages
of approximately $3.90 billion, joint and several liability, trebling of damages awarded, punitive damages, a permanent
injunction enjoining the defendants from the conduct alleged in the complaint, interest, and attorneys' fees and costs. Trial
began on June 20, 2011, and the case went to the jury on September 21, 2011. On November 16, 2011, the jury found for us on
all claims. On April 2, 2012, Rambus filed a notice of appeal to the California 1st District Court of Appeal.
We were engaged in litigation with Rambus relating to certain of Rambus' patents and certain of our claims and defenses.
Our lawsuits with Rambus related to patent matters were pending in the U.S. District Court for the District of Delaware, U.S.
District Court for the Northern District of California, Germany, France, and Italy.
In December 2013, we settled all pending litigation between us and Rambus, including all antitrust and patent matters. We
also entered into a seven-year term patent cross-license agreement with Rambus that allows us to avoid costs of patent-related
litigation during the term. We agreed to pay Rambus up to $10 million per quarter over seven years, for a total of $280 million,
beginning in the second quarter of 2014. The primary benefits we received from these arrangements were (1) the settlement
and termination of all existing litigation, (2) the avoidance of future litigation expenses and (3) the avoidance of future
management and customer disruptions. As a result, other operating expense for the first quarter of 2014 included a $233
million charge to accrue a liability, which reflects the discounted value of amounts due under this arrangement.