Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

From time to time, we may be a party to litigation arising in the ordinary course of business. Other than as discussed below, we are not a party to any litigation that we believe would have a material adverse effect on our financial position, results of operations or cash flows.

Legal Matters

Beginning in November 2009, Hitachi High-Technologies Corporation (“Hitachi”) commenced a series of legal and administrative proceedings in Japan and Korea against our subsidiary, FEI Company Japan Ltd. (“FEI Japan”) alleging infringement of certain Hitachi patents relating to focused ion beam ("FIB") systems, and FEI Japan filed a series of counter-claims against Hitachi related to such proceedings. In August 2012, we entered into an agreement for the mutual settlement and release of any and all claims relating to infringement of each party's respective FIB patents and a global cross license for such patents. All pending claims and counter-claims in the proceedings have been dismissed. We also agreed to make a one-time payment of$15.0 millionto Hitachi covering past damages and future rights to the licensed technology. Of that amount,$5.4 millionis attributed to past damages related to this technology, the majority of which was charged to SG&A expense in the fourth quarter of 2011. The remaining$9.6 millionis attributed to future technology license rights, was recorded as prepaid royalties and will be amortized over an economic life of8 years.

Purchase Obligations

We have commitments under non-cancelable purchase orders, primarily relating to inventory, totaling$63.2 million at December 31, 2012. These commitments expire at various times through the fourth quarter of 2015.