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Commitments
12 Months Ended
Dec. 29, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments
Commitments

Leases

The Company leases office and manufacturing facilities under various noncancellable lease agreements. Facility leases generally provide for periodic rent increases, and many contain escalation clauses and renewal options. Certain leases require the Company to pay property taxes and routine maintenance. The Company is headquartered in San Diego, California and leases facilities in San Diego and the San Francisco Bay Area in California; Madison, Wisconsin; Morrisville, North Carolina; Australia; Brazil; China; France; Japan; Singapore; the Netherlands; and the United Kingdom. The lease for the Company’s headquarters expires in 2031, with four five-year options to extend.

During 2013, the Company entered into an agreement to sublease sections of its former headquarters. The sublease has an initial term of approximately ten years. In conjunction with the sublease, the Company issued a letter of credit in the amount of $8.0 million, which will decrease ratably to zero over the term of the sublease.

Annual future minimum payments under operating leases as of December 29, 2013 were as follows (in thousands):

 
Operating Leases
 
Sublease Income
 
Net Operating Leases
2014
$
29,526

 
$
(2,478
)
 
$
27,048

2015
29,463

 
(2,552
)
 
26,911

2016
29,327

 
(2,629
)
 
26,698

2017
29,383

 
(2,708
)
 
26,675

2018
29,601

 
(2,789
)
 
26,812

Thereafter
395,342

 
(14,708
)
 
380,634

Total minimum lease payments
$
542,642

 
$
(27,864
)
 
$
514,778



Rent expenses were $28.1 million, $21.4 million, and $17.4 million for the years ended December 29, 2013, December 30, 2012, and January 1, 2012, respectively.

The Company recorded facility exit obligations upon vacating its former headquarters during the years ended December 29, 2013, December 30, 2012, and January 1, 2012. Changes in the facility exit obligation from January 1, 2012 through December 29, 2013 are as follows (in thousands):
 
 
Headquarter Facility Exit Obligation
Balance as of January 1, 2012:
$
25,049

Adjustment to facility exit obligation
24,878

Accretion of interest expense
2,129

Cash payments
(6,704
)
Balance as of December 30, 2012:
45,352

Adjustment to facility exit obligation
(114
)
Accretion of interest expense
2,738

Cash payments
(9,758
)
Balance as of December 29, 2013
$
38,218



Warranties

Changes in the Company’s reserve for product warranties from January 2, 2011 through December 29, 2013 are as follows (in thousands):

 
Warranty Reserve
Balance as of January 2, 2011
$
16,761

Additions charged to cost of revenue
17,913

Repairs and replacements
(22,708
)
Balance as of January 1, 2012
11,966

Additions charged to cost of revenue
17,279

Repairs and replacements
(19,109
)
Balance as of December 30, 2012
10,136

Additions charged to cost of revenue
15,674

Repairs and replacements
(15,403
)
Balance as of December 29, 2013
$
10,407