Commitments And Contingencies

12 Months Ended

Nov. 30, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

12.    Commitments and Contingencies

Letters of Credit

In connection with the mortgage note payable, we entered into an irrevocable letter of credit in the amount of $13.0 million; additionally, in connection with two sales transaction denominated in foreign currency we entered into two irrevocable letters of credit in the amounts of approximately $1.0 million and $0.4 million; see Note 10 for further details. The letter of credit is collateralized by the $20.0 million revolving line of credit described above in Note 10 and automatically renews for successive one-year periods until the mortgage note payable has been satisfied in full. As of November 30, 2011, we were in compliance with all covenants under the revolving line of credit.

Prepaid Land Lease

In June 2003, we entered into a 51-year lease of the land upon which our corporate headquarters is located. The lease was paid in advance for a total of $28.0 million, but is subject to adjustments every ten years based upon changes in market condition. Should it become necessary, we have the option to prepay any rent increases due as a result of a change in fair market value. This prepaid land lease is being amortized using the straight-line method over the life of the lease; the portion to be amortized over the next twelve months is included in Prepaid Expenses and Other Current Assets, and the remainder is included in Other Assets on our Consolidated Balance Sheets.

Operating Commitments

At various locations worldwide, we lease office space and equipment under non-cancelable operating leases with various expiration dates through September 2019. Rental expense was $14.2 million, $11.0 million and $9.7 million in fiscal years 2011, 2010 and 2009, respectively.

As of November 30, 2011, contractual commitments associated with indebtedness, lease obligations and restructuring are as follows (in thousands):

	Total			2012			2013			2014		2015		2016		Thereafter
Operating commitments:
Debt principal(1)	$	68,108		$	32,397		$	35,711		$	—	$	—	$	—	$	—
Debt interest		3,319			2,036			1,283			—		—		—		—
Operating leases		30,766			9,441			7,433			5,339		3,153		1,911		3,489
		102,193			43,874			44,427			5,339		3,153		1,911		3,489
Restructuring-related commitments:
Gross lease obligations		846			741			105			—		—		—		—
Committed sublease income		(433	)		(366	)		(67	)		—		—		—		—
		413			375			38			—		—		—		—
Total commitments	$	102,606		$	44,249		$	44,465		$	5,339	$	3,153	$	1,911	$	3,489

(1) For fiscal year 2012, the debt principle includes $30.0 million outstanding balance under the credit facility that is shown as long-term debt on the balance sheet due to the Company's intent and ability to refinance on a long-term basis under the Amended Credit Agreement.

Future minimum lease payments under restructured non-cancelable operating leases as of November 30, 2011, are included in Accrued Restructuring Costs on our Consolidated Balance Sheets; see Note 9 for further details.

The above commitment table does not include $20.8 million of long-term income tax liabilities recorded in accounting for uncertainty in income taxes due to the fact that we are unable to reasonably estimate the timing of these potential future payments.

Indemnifications

Our software license agreements typically provide for indemnification of customers for intellectual property infringement claims. To date, no such claims have been filed against us. We also warrant to customers that software products operate substantially in accordance with the software product's specifications. Historically, we have incurred minimal costs related to product warranties, and, as such, no accruals for warranty costs have been made. In addition, we indemnify our officers and directors under the terms of indemnity agreements entered into with them, as well as pursuant to our certificate of incorporation, bylaws and applicable Delaware law.