14. Commitments and contingencies Commitments Operating leases Our primary facility is located in Milpitas, California. We also lease facilities in China, Denmark, France, Germany, The Netherlands, Hong Kong, Singapore, Taiwan, Vietnam, South Korea and Israel. We also lease vehicles under non-cancelable leases. As further described in Note 11, in connection with certain restructuring measures adopted in fiscal 2013, we early terminated our non-cancelable lease agreement in Canada. In the second quarter of fiscal 2014, we could reasonably estimate the outcome and as a result, we reserved $0.8 million of cost accrual for that matter. During the third quarter of fiscal 2014, we entered into a settlement of all outstanding disputes between the parties and as a result of the settlement we paid approximately $0.8 million to the landlord. In the third quarter of fiscal 2014, pursuant to our restructuring plan, we early terminated a facility lease for our location in southern California. See Note 11 for further information regarding the restructuring plan. Future minimum annual payments under non-cancelable operating leases as of November 2, 2013 are as follows (in thousands): Fiscal Year Amount 2014 (remaining three months) $ 1,438 2015 4,356 2016 2,898 2017 1,641 2018 144 Total minimum lease payments $ 10,477 Purchase commitments We place non-cancelable orders to purchase semiconductor products from our suppliers on an eight to twelve week lead-time basis. As of November 2, 2013, the total amount of outstanding non-cancelable purchase orders was approximately $16.6 million. Design Tools During the second quarter of fiscal 2014, we entered into an agreement with a vendor to purchase $12.9 million of design tools. In June 2013, approximately $1.3 million of related licenses were delivered to us. The remaining $11.6 million of licenses will be delivered in December 2013. Payments on the licenses are being made on a quarterly basis from June 2013 through March 2016. As of November 2, 2013 remaining payments for the license