Subsequent Event

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On July 27, 2018 we executed an agreement (the “Termination Agreement”) to terminate the lease agreement dated April 19, 2013 between John Arrillaga Survivor’s Trust, represented by John Arrillaga, Trustee, and Richard T. Peery Separate Property Trust, represented by Richard T. Peery, Trustee and the Company, pursuant to which the Company had leased a portion of an approximately 108,000 square foot, two-story building located at 6700 Dumbarton Circle, Fremont, CA, near the Company’s headquarters. The Company has moved the operations and personnel from the formerly leased facility into our adjacent owned headquarters building. As of July 27, 2018, prior to executing the Termination Agreement, the underlying lease had a remaining term of ten years and minimum non-cancellable lease payments of $16.0 million. The Termination Agreement requires us to pay total penalties of $0.8 million, which will be charged to restructuring expense. For accounting purposes we are the owner of the property. As of June 30, 2018, we have included in property and equipment, net an asset with a net book value of $13.6 million. We also have a liability of $13.9 million on the Condensed Consolidated Balance Sheet as of June 30, 2018 representing the present value of the lease obligation. We expect to derecognize the asset and liability associated with this property as part of the accounting for the termination of this lease.