Commitments and Contingencies

12 Months Ended

Mar. 25, 2017

Commitments and Contingencies [Abstract]

11. Commitments and Contingencies

Facilities and Equipment Under Operating and Capital Lease Agreements

We currently own our corporate headquarters and select surrounding properties, and a UK office. We lease certain of our other facilities and certain equipment under operating lease agreements, some of which have renewal options. Certain of these arrangements provide for lease payment increases based upon future fair market rates. As of March 25, 2017, our principal facilities are located in Austin, Texas and Edinburgh, Scotland, United Kingdom.

Total rent expense under operating leases was approximately $8.2 million, $5.2 million, and $4.0 million, for fiscal years 2017, 2016, and 2015, respectively. Sublease rental income was $0.4 million, $0.3 million, and $0.1 million, for fiscal years 2017, 2016, and 2015, respectively.

As of March 26, 2016, there was equipment held under a capital lease with a cost basis of $1.0 million and accumulated depreciation related to this equipment of $0.3 million, which was paid off in fiscal year 2017, leaving no related future capital lease commitments.

The aggregate minimum future rental commitments under all operating leases, net of sublease income for the following fiscal years are (in thousands):



		Facilities		Subleases		Net Facilities Commitments		Equipment and Other Commitments		Total Commitments
2018	$	7,074	$	386	$	6,688	$	67	$	6,755
2019		10,354		391		9,963		115		10,078
2020		9,811		266		9,545		110		9,655
2021		9,580		245		9,335		110		9,445
2022		9,313		251		9,062		110		9,172
Thereafter		39,071		859		38,212		432		38,644
Total minimum lease payment	$	85,203	$	2,398	$	82,805	$	944	$	83,749

Wafer, Assembly, Test and Other Purchase Commitments

We rely primarily on third-party foundries for our wafer manufacturing needs. Generally, our foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders, with the exception of a few "take or pay" clauses included in vendor contracts that are immaterial at March 25, 2017. Cancellation fees or other charges may apply and are generally dependent upon whether wafers have been started or the stage of the manufacturing process at which the notice of cancellation is given. As of March 25, 2017, we had foundry commitments of $182.3 million.

In addition to our wafer supply arrangements, we contract with third-party assembly vendors to package the wafer die into finished products. Assembly vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. We had non-cancelable assembly purchase orders with numerous vendors totaling $3.6 million at March 25, 2017.

Test vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. Our total non-cancelable commitment for outside test services as of March 25, 2017 was $14.5 million.

Other purchase commitments primarily relate to multi-year tool commitments, and were $21.6 million at March 25, 2017.