Microsoft 2014 Annual Report Download - page 69

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68
NOTE 15 — OTHER LONG-TERM LIABILITIES
(In millions)
June 30, 2014 2013
Tax contingencies and other tax liabilities $ 10,510 $ 9,548
Other 1,084 452
Total $ 11,594 $ 10,000
NOTE 16 — COMMITMENTS AND GUARANTEES
Construction and Operating Leases
We have committed $880 million for constructing new buildings, building improvements, and leasehold improvements as
of June 30, 2014.
We have operating leases for most U.S. and international sales and support offices, research and development facilities,
manufacturing facilities, and certain equipment. Rental expense for facilities operating leases was $874 million, $711
million, and $639 million, in fiscal years 2014, 2013, and 2012, respectively. Future minimum rental commitments under
non-cancellable facilities operating leases in place as of June 30, 2014 are as follows:
(In millions)
Y
ear Ending June 30,
2015 $ 878
2016 748
2017 671
2018 598
2019 456
Thereafter 1,063
Total $ 4,414
Indemnifications
We provide indemnifications of varying scope and size to certain customers against claims of intellectual property
infringement made by third parties arising from the use of our products and certain other matters. We evaluate estimated
losses for these indemnifications, and we consider such factors as the degree of probability of an unfavorable outcome
and the ability to make a reasonable estimate of the amount of loss. To date, we have not encountered significant costs
as a result of these obligations and have not accrued any liabilities related to these indemnifications in our consolidated
financial statements.
NOTE 17 — CONTINGENCIES
Antitrust, Unfair Competition, and Overcharge Class Actions
A large number of antitrust and unfair competition class action lawsuits were filed against us in various state, federal, and
Canadian courts on behalf of various classes of direct and indirect purchasers of our PC operating system and certain
other software products between 1999 and 2005.
We obtained dismissals or reached settlements of all claims made in the United States. Under the settlements, generally
class members can obtain vouchers that entitle them to be reimbursed for purchases of a wide variety of platform-neutral
computer hardware and software. The total value of vouchers that we may issue varies by state. We will make available to
certain schools a percentage of those vouchers that are not issued or claimed (one-half to two-thirds depending on the
state). The total value of vouchers we ultimately issue will depend on the number of class members who make claims and
are issued vouchers. We estimate the total remaining cost of the settlements is approximately $400 million, all of which
had been accrued as of June 30, 2014.