LEASE COMMITMENTS

12 Months Ended

Jun. 28, 2019

Contractual Obligation, Fiscal Year Maturity [Abstract]

LEASE COMMITMENTS

NOTE 18: LEASE COMMITMENTS

Unless otherwise specified, all disclosures in this Note relate to Harris Corporation as of June 28, 2019 and exclude any information related to and any potential impact that has resulted or may result from the L3Harris Merger (as described in Note 1: Significant Accounting Policies under “Principles of Consolidation” and Note 26: Subsequent Events).

Total rental expense amounted to $73 million, $61 million and $65 million in fiscal 2019, 2018 and 2017, respectively. Future minimum rental commitments under leases with an initial lease term in excess of one year, primarily for land and buildings, amounted to approximately $313 million at June 28, 2019. These commitments for the five years following fiscal 2019 and, in total, thereafter are: $68 million due within twelve months; $62 million due in year two; $47 million due in year three; $39 million due in year four; $32 million due in year five; and $64 million in total thereafter. These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. We do not consider any of these individual leases material to our operations. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the current lease term, or estimated life, if shorter.