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TableofContents
ContractualObligationsandCommitments
OurcontractualcashobligationsandcommitmentsasofJuly3,2015,havebeensummarizedinthetablebelow:
AsofJuly3,2015,wehadaliabilityforunrecognizedtaxbenefitsandanaccrualforthepaymentofrelatedinteresttotaling$33million,noneofwhichis
expectedtobesettledwithinoneyear.Outsideofoneyear,weareunabletomakeareasonablyreliableestimateofwhencashsettlementwithataxingauthority
willoccur.
Off-BalanceSheetArrangements
AsofJuly3,2015,wedidnothaveanymaterialoff-balancesheetarrangements(asdefinedinItem303(a)(4)(ii)ofRegulationS-K).
CriticalAccountingPolicies
Themethods,estimatesandjudgmentsweuseinapplyingourmostcriticalaccountingpolicieshaveasignificantimpactontheresultswereportinour
consolidatedfinancialstatements.TheSEChasdefinedthemostcriticalaccountingpoliciesastheonesthataremostimportanttotheportrayalofourfinancial
conditionandoperatingresults,andrequireustomakeourmostdifficultandsubjectivejudgments,oftenasaresultoftheneedtomakeestimatesofmattersthat
arehighlyuncertainatthetimeofestimation.Basedonthisdefinition,ourmostcriticalpoliciesinclude:establishmentofsalesprogramaccruals,establishmentof
warrantyaccruals,accountingforincometaxes,andtheaccountingforgoodwillandotherlong-livedassets.Below,wediscussthesepoliciesfurther,aswellasthe
estimatesandjudgmentsinvolved.Wealsohaveotheraccountingpoliciesandaccountingestimatesrelatingtouncollectiblecustomeraccounts,valuationof
inventory,valuationofshare-basedpaymentsandrestructuring.Webelievethattheseotheraccountingpoliciesandaccountingestimateseitherdonotgenerally
requireustomakeestimatesandjudgmentsthatareasdifficultorassubjective,oritislesslikelythattheywouldhaveamaterialimpactonourreportedresultsof
operationsforagivenperiod.
57
   FiscalYear(s)
(Dollarsinmillions) Total 2016
2017-
2018
2019-
2020 Thereafter
ContractualCashObligations:           
Long-termdebt  $ 4,158 $ — $ — $ 800 $ 3,358
Interestpaymentsondebt   1,996  201  369  353  1,073
Capitalexpenditures   147  134  13  —  —
Operatingleases(1)   218  41  53  32  92
Purchaseobligations(2)   1,019  916  103  —  —
Otherfundingrequirements(3)   48  30  12  6  —
Subtotal   7,586  1,322  550  1,191  4,523
Commitments:           
Lettersofcreditorbankguarantees   109  109  —  —  —
Total  $ 7,695 $ 1,431 $ 550 $ 1,191 $ 4,523
(1) Includestotalfutureminimumrentexpenseundernon-cancelableleasesforbothoccupiedandvacatedfacilities(rentexpenseisshownnet
ofsubleaseincome).
(2) Purchaseobligationsaredefinedascontractualobligationsforthepurchaseofgoodsorservices,whichareenforceableandlegallybinding
onus,andthatspecifyallsignificantterms.
(3) Consistsoffundingrequirementsrelatedtostrategiccommitments.