Seagate 2014 Annual Report Download - page 111
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
tocomplywiththesubstancerestrictions,recyclerequirementsorotherenvironmentalrequirementsastheyareenactedworldwide,itcouldhaveamaterially
adverseeffectontheCompany'sbusiness.
OtherMatters
TheCompanyisinvolvedinanumberofotherjudicialandadministrativeproceedingsincidentaltoitsbusiness,andtheCompanymaybeinvolvedinvarious
legalproceedingsarisinginthenormalcourseofitsbusinessinthefuture.Althoughoccasionaladversedecisionsorsettlementsmayoccur,theCompanybelieves
thatthefinaldispositionofsuchmatterswillnothaveamaterialadverseeffectonitsfinancialpositionorresultsofoperations.
15.Commitments
Leases.TheCompanyleasescertainproperty,facilitiesandequipmentundernon-cancelableleaseagreements.Landandfacilityleasesexpireatvarious
datesthrough2082andcontainvariousprovisionsforrentaladjustmentsincluding,incertaincases,aprovisionbasedonincreasesintheConsumerPriceIndex.
Also,certainleasesprovideforrenewaloftheleaseattheCompany'soptionatexpirationofthelease.AlloftheleasesrequiretheCompanytopaypropertytaxes,
insuranceandnormalmaintenancecosts.
Futureminimumleasepaymentsforoperatingleases(includingaccruedleasepaymentsrelatingtorestructuringplans)withinitialorremainingtermsofone
yearormorewereasfollowsatJuly3,2015(leasepaymentsareshownnetofsubleaseincome):
Totalrentexpenseforallland,facilityandequipmentoperatingleases,netofsubleaseincome,was$50million,$39millionand$35millionforfiscalyears
2015,2014and2013,respectively.Totalsubleaserentalincomeforfiscalyears2015,2014and2013was$3million,$2millionand$4million,respectively.The
Companysubleasesaportionofitsfacilitiesthatitconsiderstobeinexcessofcurrentrequirements.AsofJuly3,2015,totalfutureleaseincometoberecognized
fortheCompany'sexistingsubleasesisapproximately$15million.
TheCompanyrecordedamountsforbothadverseandfavorableleaseholdinterestsandforexitcoststhatapplydirectlytotheleasecommitmentsassumed
throughthe2006acquisitionofMaxtor.AsofJuly3,2015,theCompanyhada$2millionadverseleaseholdinterestrelatedtoleasesacquiredfromMaxtor.The
adverseleaseholdinterestisbeingamortizedtoCostofrevenueandOperatingexpensesovertheremainingdurationoftheleases.Inaddition,theCompanyhad
$2millionand$5millionremaininginaccruedexitcostsrelatedtotheplannedexitofMaxtorleasedexcessfacilitiesatJuly3,2015andJune27,2014,
respectively.
CapitalExpenditures.TheCompany'snon-cancelablecommitmentsforconstructionofmanufacturingandproductdevelopmentfacilitiesandpurchasesof
equipmentapproximated$147millionatJuly3,2015.
108
FiscalYearsEnding OperatingLeases
(Dollarsinmillions)
2016 $ 41
2017 29
2018 24
2019 19
2020 13
Thereafter 92
$ 218