14.

Commitments, Contingencies and Guarantees

The amounts of our obligations follow (in millions):

			Amount of commitment and contingency expiration per period
	Total		Less than 1 year		1 to 3 years		3 to 5 years		5 years and thereafter
Performance bonds and guarantees	$	178	$	102	$	2			$	74
Stand-by letters of credit (1)		51		44			$	1		6
Credit facility to equity company		30		30
Loan guarantees		8				1				7
Subtotal of commitment expirations per period	$	267	$	176	$	3	$	1	$	87

Purchase obligations (6)	$	231	$	127	$	81	$	20	$	3
Capital expenditure obligations (2)		378		378
Total debt (3)		3,557		250		625		362		2,320
Interest on long-term debt (4)		2,222		162		299		259		1,502
Capital leases and financing obligations		359		6		8		10		335
Imputed interest on capital leases and financing obligations		231		18		36		36		141
Minimum rental commitments		545		68		111		76		290
Amended PCC Plan (7)		290		70		85		85		50
Uncertain tax positions (5)		48
Subtotal of contractual obligation payments due by period (5)	$	7,861	$	1,079	$	1,245	$	848	$	4,641
Total commitments and contingencies (5)	$	8,128	$	1,255	$	1,248	$	849	$	4,728

(1)	At December 31, 2016, $39 million of the $51 million was included in other accrued liabilities on our consolidated balance sheets.

(2)	Capital expenditure obligations primarily reflect amounts associated with our capital expansion activities.

(3)	Total debt above is stated at maturity value, and excludes interest rate swap gains/losses and bond discounts.

(4)	The estimate of interest payments assumes interest is paid through the date of maturity or expiration of the related debt, based upon stated rates in the respective debt instruments.

(5)	At December 31, 2016, $48 million was included on our balance sheet related to uncertain tax positions. Of this amount, we are unable to estimate when any of that amount will become payable.

(6)	Purchase obligations are enforceable and legally binding obligations which primarily consist of raw material and energy-related take-or-pay contracts.

(7)	See Note 7 (Investments) to the Consolidated Financial Statements for additional details.

We are required, at the time a guarantee is issued, to recognize a liability for the fair value or market value of the obligation it assumes. In the normal course of our business, we do not routinely provide significant

third

-party guarantees. Generally,

third

-party guarantees provided by Corning are limited to certain financial guarantees, including stand-by letters of credit and performance bonds, and the incurrence of contingent liabilities in the form of purchase price adjustments related to attainment of milestones. These guarantees have various terms, and none of these guarantees are individually significant.

We believe a significant majority of these guarantees and contingent liabilities will expire without being funded.

Minimum rental commitments under leases outstanding at

December

31,

2016

follow (in millions):

2017		2018		2019		2020		2021		2022 and thereafter

$	68	$	63	$	48	$	40	$	36	$	290

Total rental expense was

$105

million for

2016,

$94

million for

2015

and

$92

million for

2014.

Product warranty liability accruals at

December

31,

2016

and

December

31,

2015

are insignificant.

Corning is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse effect on Corning’s consolidated financial position, liquidity, or results of operations, is remote. Other than certain asbestos related claims, there are no other material loss contingencies related to litigation.

Corning has been named by the Environmental Protection Agency (the Agency) under the Superfund Act, or by state governments under similar state laws, as a potentially responsible party for

active hazardous waste sites. Under the Superfund Act, all parties who

may

have contributed any waste to a hazardous waste site, identified by the Agency, are jointly and severally liable for the cost of cleanup unless the Agency agrees otherwise. It is Corning’s policy to accrue for its estimated liability related to Superfund sites and other environmental liabilities related to property owned by Corning based on expert analysis and continual monitoring by both internal and external consultants. At

December

31,

2016

and

December

31,

2015,

Corning had accrued approximately

$43

million (undiscounted) and

$37

million (undiscounted), respectively, for the estimated liability for environmental cleanup and related litigation. Based upon the information developed to date, management believes that the accrued reserve is a reasonable estimate of the Company’s liability and that the risk of an additional loss in an amount materially higher than that accrued is remote.

The ability of certain subsidiaries and affiliated companies to transfer funds is limited by provisions of foreign government regulations, affiliate agreements and certain loan agreements. At

December

31,

2016,

the amount of equity subject to such restrictions for consolidated subsidiaries and affiliated companies was not significant. While this amount is legally restricted, it does not result in operational difficulties since we have generally permitted subsidiaries to retain a majority of equity to support their growth programs.