Commitments and Contingencies

12 Months Ended

Dec. 27, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE 10. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases its facilities under operating lease agreements, which expire at various dates through March 1, 2025.

Rent expense for 2014, 2013, and 2012 was  $9.1  million, $9.1 million, and $10.5 million, respectively. Excluded from rent expense for 2014, 2013, and 2012 was additional rent and operating costs of $0.3 million, $0.1 million, and $0.2 million respectively, related to excess facilities, which were previously accrued.

Minimum future rental payments under operating leases are as follows:

(in thousands)
2015	$	9,925
2016		9,672
2017		8,245
2018		7,424
2019		6,852
Thereafter		10,032
Total minimum future rental payments under operating leases	$	52,150

Long-term obligations

Included in the long-term obligations is RAID software license acquisition consideration of $24.0 million, which will be paid in installments between 2016 and 2017 (see Note 2. Business Combinations), $8.9 million of long-term post-retirement health care, severance and pension benefits, and deferred rent liabilities.  

Supply Agreements

The Company has existing supply agreements with UMC and TSMC. The terms include but are not limited to, supply terms without minimum unit volume requirements for PMC, indemnification and warranty provisions, quality assurances and termination conditions.

Contingencies

In the normal course of business, the Company receives and makes inquiries with regard to possible patent infringements. Where deemed advisable, the Company may seek or extend licenses or negotiate settlements. The Company estimates the outcomes of such negotiations based on the facts and circumstances at any point in time.  Management does not believe that such licenses or settlements will, individually or in the aggregate, have a material effect on the Company’s financial position, results of operations or cash flows.