Commitments and Contingencies

12 Months Ended

Jun. 27, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 4. Commitments and Contingencies

Lease Commitments

The Company leases certain facilities and equipment under long-term, non-cancelable operating leases. The Company’s operating leases consist of leased property and equipment that expire at various dates through 2022. Rental expense under these operating leases, including month-to-month rentals, was $59 million, $64 million and $41 million in 2014, 2013 and 2012, respectively. Future minimum lease payments under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at June 27, 2014 are as follows (in millions):

2015	$	44
2016	38
2017	24
2018	20
2019	18
Thereafter	55
Total future minimum payments	$	199

Product Warranty Liability

Changes in the warranty accrual for 2014, 2013 and 2012 were as follows (in millions):

	2014			2013			2012
Warranty accrual, beginning of period	$	187		$	260		$	170
Warranty liabilities assumed as a result of acquisitions	4			—			139
Charges to operations	170			178			154
Utilization	(207		)	(221		)	(196		)
Changes in estimate related to pre-existing warranties	28			(30		)	(7		)
Warranty accrual, end of period	$	182		$	187		$	260

Accrued warranty also includes amounts classified in other liabilities in the consolidated balance sheets of $63 million at June 27, 2014 and $73 million at June 28, 2013.

Long-term Purchase Agreements

The Company has entered into long-term purchase agreements with various component suppliers. The commitments depend on specific products ordered and may be subject to minimum quality requirements and future price negotiations. The Company expects these commitments to total $174 million for 2015, $55 million for 2016, $13 million for 2017, $6 million for 2018 and $3 million for 2019.