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 2 years		2 to 3 years		3 to 4 years		5 years and thereafter
Performance bonds and guarantees	$	35	$	22	$	3	$	5			$	5
Credit facilities for equity companies		50		25		25
Stand-by letters of credit (1)		57		57
Subtotal of commitment expirations per period	$	142	$	104	$	28	$	5			$	5

Purchase obligations	$	89	$	37	$	21	$	11	$	9	$	11
Capital expenditure obligations (2)		240		240
Total debt (3)		3,214		73		295		136		154		2,556
Interest on long-term debt (4)		2,853		160		165		151		144		2,233
Minimum rental commitments		834		383		200		149		28		74
Capital leases (3)		216		3		2		3		3		205
Imputed interest on capital leases		135		12		12		12		12		87
Uncertain tax positions (5)		4		2		2
Subtotal of contractual obligation payments due by period		7,585		910		697		462		350		5,166
Total commitments and contingencies	$	7,727	$	1,014	$	725	$	467	$	350	$	5,171

(1)	At December 31, 2012, $41 million of the $57 million was included in other accrued liabilities on our consolidated balancesheets.

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

(3)	At December 31, 2012, $3.4 billion was included on our balance sheet. Total debt above is stated at maturity value.

(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, 2012, $6 million was included on our balance sheet related to uncertain tax positions. Of this amount, we are unable to estimate when $2 million of that amount will become payable.

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 have agreed to provide up to a $50 million credit facility to Dow Corning. The funding of the Dow Corning credit facility will be required only if Dow Corning is not otherwise able to meet its scheduled funding obligations in its confirmed Bankruptcy Plan. The purchase obligations primarily represent raw material and energy-related take-or-pay contracts. 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, 2012 follow (in millions):

2013	2014	2015	2016	2017	2018 and thereafter

$383	$200	$149	$28	$20	$54

Total rental expense was $80 million for 2012, $84 million for 2011 and $70 million for 2010.

A reconciliation of the changes in the product warranty liability for the year ended December 31 follows (in millions):


	2012		2011
Balance at January 1	$	23	$	24
Adjustments for warranties issued for current year sales	$	3	$	4
Adjustments for warranties related to prior year sales	$	(20)	$	(3)
Settlements made during the current year	$		$	(2)
Balance at December 31	$	6	$	23

Corning is a defendant in various lawsuits, including environmental, product-related suits, the Dow Corning and PCC matters discussed in Note 7 (Investments) to the Consolidated Financial Statements, 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 17 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, 2012 and December 31, 2011, Corning had accrued approximately $21 million (undiscounted) and $25 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, 2012, the amount of equity subject to such restrictions for consolidated subsidiaries 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.