22.

COMMITMENTS

The Company’s commitments as of December 31, 2012 were as follows:


In millions of U.S dollars	Total		2013		2014		2015		2016		2017		Thereafter
Operating leases		277		71		46		36		27		24		73
Purchase obligations		521		414		67		40		—		—		—
of which:
Equipment purchase		*175*		175		—		—		—		—		—
Foundry purchase		*127*		127		—		—		—		—		—
Software, technology licenses and design		*219*		112		67		40		—		—		—
Other obligations		344		122		72		52		42		37		19

Total		1,142		607		185		128		69		61		92

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 2013 to 2017 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 $114 million for the year ended December 31, 2012 and $135 million for the years ended December 31, 2011 and 2010.

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.