Commitments and Contingencies

12 Months Ended

Jun. 28, 2013

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 $64 million, $41 million and $23 million in 2013, 2012 and 2011, respectively. Future minimum lease payments under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at June 28, 2013 are as follows (in millions):

	Operating
2014	$	40
2015		32
2016		26
2017		13
2018		13
Thereafter		46
Total future minimum payments	$	170

Product Warranty Liability

Changes in the warranty accrual for 2013, 2012 and 2011 were as follows (in millions):

	2013			2012			2011
Warranty accrual, beginning of period	$	260		$	170		$	170
Warranty liabilities assumed as a result of the Acquisition		—			139			—
Charges to operations		178			154			172
Utilization		(221	)		(196	)		(160	)
Changes in estimate related to pre-existing warranties		(30	)		(7	)		(12	)
Warranty accrual, end of period	$	187		$	260		$	170

Accrued warranty also includes amounts classified in other liabilities in the consolidated balance sheets of $73 million at June 28, 2013 and $89 million at June 29, 2012.

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 $43 million for 2014, $8 million for 2015, $2 million for 2016, $1 million for 2017 and $1 million for 2018.