Lease Financing Obligation

3 Months Ended

Jul. 01, 2012

Lease Financing Obligation [Abstract]

LEASE FINANCING OBLIGATION

NOTE 13. LEASE FINANCING OBLIGATION

We have acquired engineering design tools (“design tools”) under capital leases. We acquired design tools of $1.1 million in July 2009 under a three-year license, $1.3 million in December 2009 under a 28-month license, $1.0 million in June 2010 under a three-year license, $5.8 million in October 2011 under a three-year license and $4.5 million in December 2011 under a three-year license, all of which were accounted for as capital leases and recorded in the property, plant and equipment, net line item in the consolidated balance sheets. The related design tool obligations were included in other current liabilities and long-term lease financing obligations in our condensed consolidated balance sheets as of July 1, 2012 and April 1, 2012, respectively. The effective interest rates for the design tools range from 2.0% to 7.25%.

Amortization of the design tools recorded using the straight-line method over the remaining useful life for the periods indicated below was as follows (in thousands):

	Three Months Ended
	July 1, 2012		July 3, 2011
Amortization expense	$	895	$	894

Future minimum lease and sublease income payments for the lease financing obligations as of July 1, 2012 are as follows (in thousands):

Fiscal Years	Design tools
2013 (9 months remaining)	$	2,826
2014		2,946
2015		814
Total minimum lease payments		6,586
Less: amount representing interest		304
Present value of minimum lease payments		6,282
Less: short-term lease financing obligation		2,826
Long-term lease financing obligations	$	3,456

Interest expense for the lease financing obligation for the periods indicated below was as follows (in thousands):

	Three Months Ended
	July 1, 2012		July 3, 2011
Interest expense	$	34	$	60

In the course of our business, we enter into arrangements accounted for as operating leases related to engineering design software licenses and office space. Rent expenses for all operating leases for the periods indicated below were as follows (in thousands):

	Three Months Ended
	July 1, 2012		July 3, 2011
Rent expense	$	133	$	388

Our future minimum lease payments for the lease operating obligations as of July 1, 2012 are as follows (in thousands):

Fiscal Years	Facilities
2013 (9 months remaining)	$	302
2014		80
2015		72
2016		72
2017 and thereafter		91
Total minimum lease payments	$	617