Commitments And Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments

We lease our facilities and certain equipment under operating leases. During 2011, we renewed our leases for our sales offices in China, Taiwan and the Philippines. None of these renewed leases were significant commitments for us. During 2012, we extended our lease in Germany. During 2015, we extended our lease in San Jose, California. Certain of our leasing arrangements subject us to letter of credit requirements to provide a $2.4 million bank letter of credit as security to the landlord. In addition, certain of our leases require us to restore the facilities back to the original condition at the end of lease terms. As such, we recorded asset retirement obligations related to remediation costs as disclosed in Note 11 herein.

In March 2010, we entered into an operating lease agreement for facilities in preparation for the expansion of our manufacturing operations in Singapore. The initial term of this lease was three years. On August 15, 2012, we renegotiated this lease and entered into a new lease that will expire in June 2018.

In March 2013, we entered into an operating lease agreement for facilities in Waltham, Massachusetts, for sales, research and development activities. The lease for this facility expires in February 2018.

In October 2013, we entered into a twenty-four month operating lease agreement for equipment that have expired on December 14, 2015.

In August 2014, we entered into a thirty-six month capital lease agreement for equipment valued at $2.5 million. At the end of the lease term, we have an option to purchase the leased equipment for a bargain purchase price. Accordingly, this lease is classified as a capital lease. The amortization of these leased assets is included with depreciation expense. As of December 31, 2015, the total amortization of the leased equipment is $0.6 million.

In July 2015, we entered into a lease amendment for our facilities in San Jose, California. The lease amendment is to extend the building lease for five years and will expire in January 2021. We account for this lease as an operating lease; any improvements to the leased property are capitalized and classified as leasehold improvements.

The table below summarizes our capital and operating lease commitments as of December 31, 2015:



In thousands	Capital Leases			Operating Leases
For the years:
2016	$	873		$	3,307
2017	582			3,333
2018	—			2,766
2019	—			2,521
2020	—			2,580
Total minimum lease payments	1,455			$	14,507
Interest component	(49		)
Present value of total capital lease payments	$	1,406

Rent expense was approximately $2.7 million, $2.7 million and $2.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Our open purchase order commitments, which primarily relate to purchases of inventories and equipment, were approximately $13.9 million as of December 31, 2015.

Legal Proceedings

We are subject to claims and litigation arising in the ordinary course of business. We do not believe any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our consolidated financial statements. At December 31, 2015, there were no significant outstanding legal matters.