Long-Term Obligations and Commitments

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the Notes). We carried the Notes at face value less the unamortized discount in long-term debt on our balance sheets at July 31, 2015 and July 31, 2014. The Notes are redeemable by Intuit at any time, subject to a make-whole premium, and include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. Interest on the Notes is payable semi-annually on March 15 and September 15. We paid $29 million in cash for interest on the Notes during each of the twelve months ended July 31, 2015, July 31, 2014 and July 31, 2013.

Other Long-Term Obligations

Other long-term obligations were as follows at the dates indicated:



	July 31,
(In millions)	2015			2014
Total deferred rent	$	49		$	52
Total license fee payable	34			41
Long-term income tax liabilities	45			32
Long-term deferred income tax liabilities	50			44
Other	13			14
Total long-term obligations	191			183
Less current portion (included in other current liabilities)	(19		)	(17		)
Long-term obligations due after one year	$	172		$	166

In May 2009 we entered into an agreement to license certain technology for $20 million in cash and $100 million payable over ten fiscal years. The total present value of the arrangement at inception was approximately $89 million. The total license fee payable in the table above includes imputed interest through the dates indicated.

Operating Lease Commitments and Unconditional Purchase Obligations

We lease office facilities and equipment under non-cancellable operating lease arrangements. Our facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. The leases for our corporate headquarters campus in Mountain View, California expire in 2024 and 2026, with options to extend the lease terms for an additional ten years at rates to be determined in accordance with the agreements.

In the ordinary course of business we enter into certain unconditional purchase obligations with our suppliers. These are agreements to purchase products and services that are enforceable, legally binding, and specify terms that include fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the payments.

Annual minimum commitments under operating leases and purchase obligations at July 31, 2015 were as shown in the table below.



(In millions)	Operating Lease Commitments			Purchase Obligations
Fiscal year ending July 31,
2016	$	74		$	26
2017	72			12
2018	58			55
2019	50			—
2020	47			—
Thereafter	221			1
Total commitments	$	522		$	94
Less minimum payments to be received from non-cancellable subleases	(13		)
Net operating lease commitments	$	509

Rent expense for continuing operations totaled $59 million for the twelve months ended July 31, 2015, $54 million for the twelve months ended July 31, 2014, and $50 million for the twelve months ended July 31, 2013. Rent expense includes base contractual rent and contractual variable expenses such as building maintenance, utilities, property taxes and insurance.