Commitments And Contingencies

3 Months Ended

Feb. 28, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

9. COMMITMENTS AND CONTINGENCIES

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 Condensed 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 May 2019. Rental expense was $3.8 million and $3.2 million for the three months ended February 28, 2012 and 2011, respectively.

As of February 28, 2012, contractual commitments associated with indebtedness, lease obligations and restructuring were as follows (in thousands):

	Total			Remainder of 2012			2013			2014		2015		2016		Thereafter
Operating commitments:
Debt principal (1)	$	137,521		$	101,810		$	35,711		$	—	$	—	$	—	$	—
Debt interest		2,798			1,515			1,283			—		—		—		—
Operating leases		35,582			8,166			9,483			6,592		4,491		3,256		3,594
Total operating commitments		175,901			111,491			46,477			6,592		4,491		3,256		3,594
Restructuring-related commitments:
Gross lease obligations		709			604			105			—		—		—		—
Committed sublease income		(342	)		(275	)		(67	)		—		—		—		—
Net restructuring-related commitment		367			329			38			—		—		—		—
Total commitments	$	176,268		$	111,820		$	46,515		$	6,592	$	4,491	$	3,256	$	3,594

⁽¹⁾  For fiscal year 2012, the debt principal includes $100.0 million outstanding balance under the credit facility that is shown as long-term debt on the balance sheet due to the Company's ability to extend the outstanding balance on a long-term basis under the 2011 Credit Facility.

Future minimum lease payments under restructured non-cancelable operating leases are included in Accrued Restructuring Costs on our Condensed Consolidated Balance Sheets.

The above commitment table does not include approximately $45.3 million of long-term income tax liabilities due to the fact that we are unable to reasonably estimate the timing of these potential future payments.

Indemnification

Our software license agreements typically provide for indemnification of customers for intellectual property infringement claims. 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.