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Commitments
 12 Months Ended
Dec. 31, 2011
Commitments, Contingencies and Claims and Legal Proceedings [Abstract]  
COMMITMENTS

22. COMMITMENTS

The Company’s commitments as of December 31, 2011 were as follows:

 

 

                                                         
In million US$   Total     2012     2013     2014     2015     2016     Thereafter  

Operating leases

     381       111       63       41       36       32       98  

Purchase obligations

     477       432       32       9       3       —         1  

of which:

                                                        

Equipment purchase

     208       208                                          

Foundry purchase

     119       119                                          

Software, technology licenses and design

     150       105       32       9       3       —         1  

Other obligations

     452       223       81       47       30       26       45  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

     1,310       766       176       97       69       58       144  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As a consequence of the Company’s planned closures of certain of its manufacturing facilities, some of the contracts as reported above have been terminated. The termination fees for the sites still in operation have not been taken into account.

Operating leases are mainly related to building and equipment leases. The amount disclosed is composed of minimum payments for future leases from 2012 to 2016 and thereafter. The Company leases land, buildings, plants and equipment under operating leases that expire at various dates under non-cancellable lease agreements. Operating lease expense was $135 million, $135 million and $174 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Purchase obligations are primarily comprised of purchase commitments for equipment, for outsourced foundry wafers and for software licenses.

Other obligations primarily relate to firm contractual commitments with respect to partnership and cooperation agreements.