12. COMMITMENTS AND CONTINGENCIES

Commitments

As of March 31, 2014 and 2013, the gross carrying amount and associated accumulated depreciation of the Company's property and equipment financed under capital leases, and the related obligations was not material. The Company also leases certain of its facilities and equipment under non-cancelable operating leases. These operating leases expire in various years through 2028 and require the following minimum lease payments:

Fiscal Year Ending March 31,	Operating Lease

	(In thousands)
2015	$	137,274
2016		106,310
2017		84,636
2018		66,466
2019		54,422
Thereafter		106,013


Total minimum lease payments	$	555,121

Total rent expense amounted to $150.1 million, $138.8 million and $160.5 million in fiscal years 2014, 2013 and 2012, respectively.

As part of an existing manufacturing agreement with a customer, the Company is obligated to reimburse the customer for certain performance provisions as defined in the contract. Also defined in the contract are certain provisions that would allow the Company to recover these losses in future periods. The maximum commitment under this arrangement was initially $88.0 million and declines as the Company manufactures and delivers products under the arrangement, which expires in August 2016. As of March 31, 2014, per the terms of the agreement, and in conjunction with negotiations with the customer during the fourth quarter of fiscal 2014, the contractual obligation for reimbursement was determined to be probable and accordingly the Company recorded $55.0 million to other charges (income), net in the consolidated statements of operations. Reimbursement is not payable until August 2016 or upon contract termination and as a result is included in other liabilities. The Company and the customer are finalizing an amendment to this agreement that includes a waiver of the $55.0 million contractual obligation. Upon the execution of the amendment, if the contractual obligation is waived, the Company will reverse this charge with a corresponding credit to other income in the period the amendment is executed.

The Company valued the contractual obligation as of March 31, 2014 based on the performance provisions defined in the contract (i.e. level 3 inputs in the fair value hierarchy).

Litigation and other legal matters

On December 11, 2013, Xilinx, Inc. (plaintiff) filed a lawsuit in Santa Clara County, California, Superior Court against Flextronics International Ltd.; Flextronics International USA, Inc.; and Flextronics Corporation (Case No. 113CV257431). The complaint asserts various claims, including fraud, negligent misrepresentation, breach of contract, and unfair competition, based on specific alleged incidents concerning our purchases and sales of Xilinx products. The plaintiff seeks an unspecified amount of compensatory, statutory, punitive, and other forms of damages, injunctive relief, and attorneys' fees and costs. The plaintiff also seeks a jury trial. Although the outcome of this matter is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of this matter, which are in excess of amounts already accrued in its consolidated balance sheets, would not be material to the financial statements as a whole.

During the fourth quarter of fiscal 2014, one of our Brazilian subsidiaries received an assessment for certain sales and import taxes. The tax assessment notice is for nine months of calendar year 2010. This assessment is currently being reviewed at an administrative level, and we plan to vigorously oppose it as well as any future assessments. We are, however, unable to determine the likelihood of an unfavorable outcome of these assessments against our Brazilian subsidiary. While we believe there is no legal basis for the alleged liabilities, due to the complexities and uncertainty surrounding the administrative-review and judicial processes in Brazil and the nature of the claims, we are unable to reasonably estimate a range of loss, if any. We do not expect final judicial determination on these claims for several years.

In addition, from time to time, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. We defend ourselves vigorously against any such claims. Although the outcome of these matters is currently not determinable, management expects that any losses that are probable or reasonably possible of being incurred as a result of these matters, which are in excess of amounts already accrued in its consolidated balance sheet, would not be material to the financial statements as a whole.