Seagate 2015 Annual Report Download - page 114
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SEAGATETECHNOLOGYPLC
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS—(Continued)
15.Commitments
Leases.TheCompanyleasescertainproperty,facilitiesandequipmentundernon-cancelableleaseagreements.Landandfacilityleasesexpireatvarious
datesthrough2082andcontainvariousprovisionsforrentaladjustmentsincluding,incertaincases,aprovisionbasedonincreasesintheConsumerPriceIndex.
Also,certainleasesprovideforrenewaloftheleaseattheCompany'soptionatexpirationofthelease.AlloftheleasesrequiretheCompanytopaypropertytaxes,
insuranceandnormalmaintenancecosts.
Futureminimumleasepaymentsforoperatingleases(includingaccruedleasepaymentsrelatingtorestructuringplans)withinitialorremainingtermsofone
yearormorewereasfollowsatJuly1,2016(leasepaymentsareshownnetofsubleaseincome):
Totalrentexpenseforallland,facilityandequipmentoperatingleases,netofsubleaseincome,was$43million,$50millionand$39millionforfiscalyears
2016,2015and2014,respectively.Totalsubleaserentalincomeforfiscalyears2016,2015and2014was$3million,$3millionand$2million,respectively.The
Companysubleasesaportionofitsfacilitiesthatitconsiderstobeinexcessofcurrentrequirements.AsofJuly1,2016,totalfutureleaseincometoberecognized
fortheCompany'sexistingsubleasesisapproximately$12million.
CapitalExpenditures.TheCompany'snon-cancelablecommitmentsforconstructionofmanufacturingandproductdevelopmentfacilitiesandpurchasesof
equipmentapproximated$110millionatJuly1,2016.
16.Guarantees
IndemnificationstoOfficersandDirectors
OnMay4,2009,SeagateTechnology,anexemptedcompanyincorporatedwithlimitedliabilityunderthelawsoftheCaymanIslands("Seagate-Cayman"),
thentheparentcompany,enteredintoanewformofindemnificationagreement(the"RevisedIndemnificationAgreement")withitsofficersanddirectorsof
Seagate-Caymananditssubsidiaries(each,an"Indemnitee").TheRevisedIndemnificationAgreementprovidesindemnificationinadditiontoanyofIndemnitee's
indemnificationrightsunderSeagate-Cayman'sArticlesofAssociation,applicablelaworotherwise,andindemnifiesanIndemniteeforcertainexpenses(including
attorneys'fees),judgments,finesandsettlementamountsactuallyandreasonablyincurredbyhimorherinanyactionorproceeding,includinganyactionbyorin
therightofSeagate-Caymanoranyofitssubsidiaries,arisingoutofhisorherserviceasadirector,officer,employeeoragentofSeagate-Caymanoranyofits
subsidiariesorofanyotherentitytowhichheorsheprovidesservicesatSeagate-Cayman'srequest.However,anIndemniteeshallnotbeindemnifiedunderthe
RevisedIndemnificationAgreementfor(i)anyfraudordishonestyintheperformanceofIndemnitee'sdutyto
111
FiscalYearsEnding OperatingLeases
(Dollarsinmillions)
2017 $ 27
2018 22
2019 16
2020 12
2021 9
Thereafter 82
$ 168