Commitments

Leases. The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on increases in the Consumer Price Index. Also, certain leases provide for renewal of the lease at the Company's option at expiration of the lease. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs which are expensed as incurred.

Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or remaining terms of one year or more were as follows at June 30, 2017 (lease payments are shown net of sublease income):



Fiscal Years Ending	Operating Leases
(Dollars in millions)
2018	$	19
2019	15
2020	11
2021	9
2022	6
Thereafter	75
	$	135

Total rent expense for all land, facility and equipment operating leases, net of sublease income, was $29 million, $43 million and $50 million for fiscal years 2017, 2016 and 2015, respectively. Total sublease rental income for fiscal years 2017, 2016 and 2015 was $2 million, $3 million and $3 million, respectively. The Company subleases a portion of its facilities that it considers to be in excess of current requirements. As of June 30, 2017, total future lease income to be recognized for the Company's existing subleases is approximately $9 million

Capital Expenditures. The Company's non-cancelable commitments for construction of manufacturing and product development facilities and purchases of equipment approximated $107 million at June 30, 2017.

Unconditional Purchase Obligations. During fiscal year 2017, the Company had unconditional long-term purchase obligations of approximately $1.1 billion in the aggregate, of which $900 million in the aggregate remains outstanding as of June 30, 2017, to purchase minimum quarterly amounts of inventory components at fixed and variable prices. The Company expects the commitment to total $375 million, $350 million and $175 million for fiscal years 2018, 2019 and 2020, respectively with no remaining commitment thereafter.