Seagate 2013 Annual Report Download - page 116

Table of Contents
SEAGATE TECHNOLOGY PLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company may be subject to various state, federal and international laws and regulations governing the environment, including those
restricting the presence of certain substances in electronic products. For example, the European Union ("EU") enacted the Restriction of the Use
of Certain Hazardous Substances in Electrical and Electronic Equipment, which prohibits the use of certain substances, including lead, in certain
products, including disk drives, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions,
including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration,
Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern ("SVHCs") in products.
If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they
are enacted worldwide, it could have a materially adverse effect on the Company's business.
Other Matters
The Company is involved in a number of other judicial and administrative proceedings incidental to its business, and the Company may be
involved in various legal proceedings arising in the normal course of its business in the future. Although occasional adverse decisions or
settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial
position or results of operations.
15. Commitments
Leases. The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases
expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on
increases in the Consumer Price Index. Also, certain leases provide for renewal of the lease at the Company's option at expiration of the lease.
All of the leases require the Company to pay property taxes, insurance and normal maintenance costs.
Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or
remaining terms of one year or more were as follows at June 27, 2014 (lease payments are shown net of sublease income):
Total rent expense for all land, facility and equipment operating leases, net of sublease income, was $39 million, $35 million and
$34 million for fiscal years 2014, 2013 and 2012, respectively. Total sublease rental income for fiscal years 2014, 2013 and 2012 was $2 million,
$4 million and $6 million, respectively. The Company subleases a portion of its facilities that it considers to be in excess of current requirements.
As of June 27, 2014, total future lease income to be recognized for the Company's existing subleases is approximately $5 million.
109
Fiscal Years Ending
Operating Leases
(Dollars in millions)
2015
$
42
2016
31
2017
21
2018
15
2019
22
Thereafter
69
1
1
1
1
$
200
1
1
1
1
1
1
1
1