Commitments

The Company has operating leases for most U.S. and international sales and support offices and certain equipment. Rental expense for operating leases was $135 million, $201 million, and $281 million in 1999, 2000, and 2001. Future minimum rental commitments under noncancellable leases, in millions of dollars, are: 2002, $218; 2003, $210; 2004, $185; 2005, $162; 2006, $140; and thereafter, $430. Microsoft has committed $181 million for constructing new buildings and $46 million for the manufacturing of products. In addition, the Company has guaranteed $420 million in debt of its equity investees.