Commitments and Contingencies

Lease Commitments

We have commitments under operating leases for our facilities that expire on various dates through 2026, including the Waltham lease arrangement discussed in Note 6. Total lease expense, net of sublease income for the years ended June 30, 2016, 2015 and 2014 was $12,943, $16,926 and $14,151, respectively. The decrease in total lease expense during fiscal 2016 as compared to the prior comparable periods is due to the move to our Waltham, Massachusetts facility during the first quarter of fiscal 2016 and the treatment of the related lease similar to a capital lease, with cash payments allocated to depreciation expense and interest expense.

We also lease certain machinery and plant equipment under both capital and operating lease agreements that expire at various dates through 2022. The aggregate carrying value of the leased equipment under capital leases included in property, plant and equipment, net in our consolidated balance sheet at June 30, 2016, is $29,443, net of accumulated depreciation of $17,055; the present value of lease installments not yet due included in other current liabilities and other liabilities in our consolidated balance sheet at June 30, 2016 amounts to $29,329.

Future minimum payments required for our lease obligations for the next five fiscal years and thereafter are as follows at June 30, 2016:



	Operating lease obligations		Build-to-suit lease obligations (1)		Capital lease obligations		Total lease obligations
2017	$	14,713	$	12,569	$	10,648	$	37,930
2018	13,257		12,569		8,360		34,186
2019	12,960		12,569		5,979		31,508
2020	12,604		12,569		3,585		28,758
2021	11,938		12,569		1,019		25,526
Thereafter	24,774		58,449		302		83,525
Total	$	90,246	$	121,294	$	29,893	$	241,433

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(1) Minimum payments relate to our Waltham lease obligation, refer to Note 6 for additional details.

Purchase Obligations

At June 30, 2016, we had unrecorded commitments under contract of $55,328, which were primarily composed of commitments for production and computer equipment purchases of approximately $35,373. Production and computer equipment purchases relates primarily to a two year purchase commitment for equipment with one of our suppliers. In addition, we had purchase commitments for third-party web services of $9,500, professional and consulting fees of approximately $3,385, inventory purchase commitments of $1,739, commitments for advertising campaigns of $818, and other unrecorded purchase commitments of $4,513.

Debt

The required principal payments due during the next five years and thereafter under our outstanding long-term debt obligations at June 30, 2016 are as follows:



2017	$	23,969
2018	23,994
2019	79,409
2020	280,544
2021	1,152
Thereafter	276,829
Total	$	685,897

Other Obligations

We have an outstanding installment obligation of $9,608 related to the fiscal 2012 intra-entity transfer of the intellectual property of our subsidiary Webs, Inc., which results in tax being paid over a 7.5 year term and has been classified as a deferred tax liability in our consolidated balance sheet as of June 30, 2016. Other obligations also include a variable contingent consideration payment for our recent WIRmachenDRUCK acquisition, based on the achievement of certain financial targets, payable at our option in cash or ordinary shares in fiscal 2018 of $1,212. In addition, we have deferred payments related to fiscal 2015 and 2016 acquisitions of $2,723 in aggregate.

Legal Proceedings

We are not currently party to any material legal proceedings. Although we cannot predict with certainty the results of litigation and claims to which we may be subject from time to time, we do not expect the resolution of any of our current matters to have a material adverse impact on our consolidated results of operations, cash flows or financial position. In all cases, at each reporting period, we evaluate whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. We expense the costs relating to our legal proceedings as those costs are incurred.