COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

Certain wafer manufacturers require the Company to forecast wafer starts several months in advance. The Company is committed to take delivery of and pay for a portion of forecasted wafer volume. As of the end of 2015 and 2014, the Company had $1.4 million and $552,000 respectively, of outstanding commitments for the purchase of wafer inventory.

The Company has purchase obligations with certain suppliers for the purchase of goods and services entered into in the ordinary course of business. As of January 3, 2016, total outstanding purchase obligations due within the next 12 months were $1.3 million.

The Company leases its primary facility under a non-cancelable operating lease that expires on December 31, 2018. In addition, the Company rents development facilities in India as well as sales offices in Europe and Asia. Total rent expense, net of sublease income, during 2015, 2014 and 2013 was approximately $878,000, $947,000 and $947,000 respectively.

Future minimum lease commitments under the Company's operating leases, net of sublease income and excluding property taxes and insurance are as follows:



	Operating Leases
	(in thousands)
Fiscal Years
2016	804
2017	704
2018	641
	$	2,149

Contingencies

One of the Company's licensors contends that the Company owes back royalties on sales of the Company's ArcticLink III VX devices. Based on the terms and conditions of the Amended and Restated License Agreement between the parties, the Company does not believe it is liable for any royalty payments on these sales. The parties have agreed to mediate the matter and are in the process of selecting a mediator. As of January 3, 2016, the Company estimates the possible loss relating to this matter to be in the range of $25,000 to $250,000.