Commitments and Contingencies

12 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Litigation and Claims— The Company is involved in various legal proceedings arising from the normal course of business activities. The Company defends itself vigorously against any such claims. In management’s opinion, the resolution of any matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

Purchase Commitments— The Company has agreements to purchase certain units of inventory and non-inventory items through fiscal year 2017. As of June 30, 2016, these remaining non-cancellable commitments were $334,010,000 compared to $378,341,000 as of June 30, 2015.

Included in the above non-cancellable commitments are hard disk drive purchase commitments totaling approximately $110,505,000, which will be paid through December 2016. The Company entered into purchase agreements with selected suppliers of hard disk drives in order to ensure continuity of supply for these components. The agreements provide for some variation in the amount of units the Company is required to purchase and the suppliers may modify the purchase price for these components due to significant changes in market or component supply conditions. Product mix for these components may be negotiated quarterly and the purchase price for these components will be reviewed quarterly with the suppliers. The Company has been negotiating the purchase price with the suppliers on an ongoing basis based upon market rates.

Lease Commitments—The Company leases offices and equipment under noncancelable operating leases which expire at various dates through 2025. In addition, the Company leases certain of its equipment under capital leases. The future minimum lease commitments under all leases are as follows (in thousands):



	Balance as of
Year ending:	Capital Leases		Operating Leases
June 30, 2017	$	261	$	4,271
June 30, 2018	234		3,924
June 30, 2019	195		3,698
June 30, 2020	94		3,737
June 30, 2021	38		1,662
Thereafter	—		2,631
Total minimum lease payments	822		$	19,923
Less: Amounts representing interest	71
Present value of minimum lease payments	751
Less: Long-term portion	524
Current portion	$	227

Rent expense for the years ended June 30, 2016, 2015 and 2014, was $4,560,000, $3,729,000 and $3,477,000, respectively.