Facilities and Equipment Under Operating Lease Agreements

With the exception of the Apex facility in Tucson, Arizona and our corporate headquarters under construction, we lease our 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 May 1, 2012, our principal leased facilities, located in Austin, Texas, consisted of approximately 214,000 square feet of office space. This leased space includes our headquarters and engineering facility, which has 197,000 square feet, of which we have subleased approximately 15,000 square feet. Our principal leased facilities in Austin, Texas also include 17,000 square feet of leased space at our failure analysis facility with lease terms that extend into calendar year 2013. Both the lease and subleases at our current headquarters and engineering facility have terms ending in August 2012. Additional leased space related to the new corporate headquarters consists of approximately 30,000 square feet of office space in Austin, Texas. We expect the five year lease term to commence on our anticipated arrival date beginning June 2012. The Company also has approximately 28,000 square feet of office space in Tucson, Arizona with terms ending May 2015.

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 Commitments	Total Commitments
2013....................................................	$ 3,652	$ 381	$ 3,271	$ 12	$ 3,283
2014....................................................	1,470	–	1,470	9	1,479
2015	993	–	993	4	997
2016	942	–	942	1	943
2017	972	–	972	–	972
Thereafter...........................................	163	–	163	–	163
Total minimum lease payments....	$ 8,192	$ 381	$ 7,811	$ 26	$ 7,837

Total rent expense was approximately $4.7 million, $4.6 million, and $4.4 million, for fiscal years 2012, 2011, and 2010, respectively. Sublease rental income was $0.4 million, $1.1 million, and $1.2 million, for fiscal years 2012, 2011, and 2010, respectively.

Wafer, Assembly and Test Purchase Commitments

We rely primarily on third-party foundries for our wafer manufacturing needs. As of March 31, 2012, we had agreements with multiple foundries for the manufacture of wafers. On December 22, 2011, the Company entered into a $10 million Capacity Investment and Loading Agreement with STATS ChipPAC Ltd (Supplier Agreement) in order to secure assembly and test capacity for certain products. We paid an initial $5 million payment on January 24, 2012, and the remaining $5 million payment is due thirty days after certain capacity expansion commitments have been achieved by STATS ChipPAC and is recorded on the consolidated balance sheet under the caption “Supplier Agreement”. As part of the agreement, we are eligible to receive rebates on our purchases up to the full amount of the specified $10 million in the Supplier Agreement upon our meeting certain purchase volume milestones. Based on our current projections, we expect to receive the full amount of our $10 million payments back in rebates during the term of the agreement. Other than the previously mentioned agreement, our foundry agreements do not have volume purchase commitments or "take or pay" clauses and provide for purchase commitments based on purchase orders. 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 31, 2012, we had foundry commitments of $46.3 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 $1.0 million at March 31, 2012.

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 31, 2012 was $2.7 million.

Other open purchase orders as of March 31, 2012 amount to $0.9 million and primarily relate to raw material costs incurred in our facility in Tucson, Arizona, which continues to serve as the assembly and test facility for our Apex products.