COMMITMENTS AND CONTINGENCIES

Stock Option Litigation

In June 2010, the Company entered into a stipulation of settlement settling a putative class action lawsuit that was filed in the U.S. District Court for the Northern District of California alleging claims under the federal securities laws based on certain alleged misrepresentations and omissions in the Company's public disclosures concerning its stock option accounting practices. During fiscal year 2011, the Company paid $173.0 million in cash to settle this matter.

Legal Proceedings

We are party or subject to various other legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to intellectual property matters. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized or reserved, if any.

Commitments

The Company leases certain of its facilities under various operating leases that expire at various dates through June 2025. The lease agreements generally include renewal provisions and require the Company to pay property taxes, insurance, and maintenance costs.

Future annual minimum payments for all commitments are as follows:



	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in thousands)
Operating lease obligations (1)	$	48,114	$	10,015	$	15,228	$	12,858	$	10,013
Software license	8,076		4,038		4,038		—		—
Long-term debt obligations (2)	505,588		2,015		3,573		—		500,000
Interest payments associated with long-term debt obligations (3)	168,888		17,685		33,781		33,750		83,672
Capital equipment and inventory related purchase obligations (4)	16,317		2,391		4,014		4,139		5,773

Total	$	746,983	$	36,144	$	60,634	$	50,747	$	599,458

(1) The Company leases some facilities under non-cancelable operating lease agreements that expire at various dates through 2025.

(2) Long-term debt represents amounts due for the Company's $500 million notes and other notes acquired through the SensorDynamics acquisition.

(3) Interest payments associated with the Company's $500 million notes and other notes acquired through the SensorDynamics acquisition.

(4) Capital equipment purchase obligations represent commitments for purchase of property, plant and equipment. The Company orders some materials and supplies in advance or with minimum purchase quantities. The Company is obligated to pay for the materials and supplies when received.

Purchase orders for the purchase of the majority of our raw materials and other goods and services are not included in the table. Our purchase orders generally allow for cancellation without significant penalties. We do not have significant agreements for the purchase of raw materials or other goods specifying minimum quantities or set prices that exceed our expected short-term requirements.

Rental expense amounted to approximately $9.5 million, $17.4 million, and $12.7 million in fiscal years 2013, 2012 and 2011, respectively.

Indemnifications

The Company indemnifies certain customers, distributors, suppliers and subcontractors for attorney fees and damages and costs awarded against such parties in certain circumstances in which the Company's products are alleged to infringe third party intellectual property rights, including patents, registered trademarks or copyrights. The terms of the Company's indemnification obligations are generally perpetual from the effective date of the agreement. In certain cases, there are limits on and exceptions to the Company's potential liability for indemnification relating to intellectual property infringement claims.

Pursuant to the Company's charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers, employees and directors, as well as certain former officers and directors.