FORM 10-K

66 The following table presents the breakdown of net deferred tax assets: (In millions) December 30, 2017 December 31, 2016 Manufacturing group: Other assets $ 430 $ 793 Other liabilities (7) (4) Finance group - Other liabilities (75) (120) Net deferred tax asset $ 348 $ 669 Our net operating loss and credit carryforwards at December 30, 2017 are as follows: (In millions) Non-U.S. net operating loss with no expiration $ 201 Non-U.S. net operating loss expiring through 2036 59 U.S. federal net operating losses expiring through 2036 269 State net operating loss and tax credits, net of tax benefits, expiring through 2036 290 Note 14. Commitments and Contingencies We are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts; alleged lack of compliance with applicable laws and regulations; production partners; product liability; patent and trademark infringement; employment disputes; and environmental, safety and health matters. Some of these legal proceedings and claims seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that existing proceedings and claims will have a material effect on our financial position or results of operations. In the ordinary course of business, we enter into standby letter of credit agreements and surety bonds with financial institutions to meet various performance and other obligations. These outstanding letter of credit arrangements and surety bonds aggregated to approximately $380 million and $525 million at December 30, 2017 and December 31, 2016, respectively. Environmental Remediation As with other industrial enterprises engaged in similar businesses, we are involved in a number of remedial actions under various federal and state laws and regulations relating to the environment that impose liability on companies to clean up, or contribute to the cost of cleaning up, sites on which hazardous wastes or materials were disposed or released. Our accrued environmental liabilities relate to installation of remediation systems, disposal costs, U.S. Environmental Protection Agency oversight costs, legal fees, and operating and maintenance costs for both currently and formerly owned or operated facilities. Circumstances that can affect the reliability and precision of the accruals include the identification of additional sites, environmental regulations, level of cleanup required, technologies available, number and financial condition of other contributors to remediation and the time period over which remediation may occur. We believe that any changes to the accruals that may result from these factors and uncertainties will not have a material effect on our financial position or results of operations. Based upon information currently available, we estimate that our potential environmental liabilities are within the range of $40 million to $140 million. At December 30, 2017, environmental reserves of approximately $65 million have been established to address these specific estimated liabilities. We estimate that we will likely pay our accrued environmental remediation liabilities over the next ten years and have classified $13 million as current liabilities. Expenditures to evaluate and remediate contaminated sites were $18 million, $15 million and $15 million in 2017, 2016 and 2015, respectively. Leases Rental expense was $122 million, $126 million and $113 million in 2017, 2016 and 2015, respectively. Future minimum rental commitments for noncancelable operating leases in effect at December 30, 2017 totaled $80 million for 2018, $64 million for 2019, $51 million for 2020, $35 million for 2021, $30 million for 2022 and $137 million thereafter. The total future minimum rental receipts under noncancelable subleases at December 30, 2017 totaled $19 million.