NOTE 8. COMMITMENTS AND CONTINGENCIES Operating Lease Commitments We lease certain facilities and equipment under non-cancelable operating lease agreements that expire at various dates through fiscal 2018. Some leases include renewal options, which would permit extensions of the expiration dates at rates approximating fair market rental values at the time of the extension. As of July 1, 2012, future minimum lease payments under non-cancelable operating leases were as follows: Fiscal Year (In thousands) 2012 (remaining six months) $ 4,561 2013 5,473 2014 4,236 2015 3,390 2016 2,317 2017 and thereafter 2,640 Total $ 22,617 Capital Lease On July 19, 2011, we entered into a capital lease agreement which allows us to borrow up to $35.0 million to finance the acquisition of certain manufacturing equipment. We have the option of purchasing the tools from the lessor at specified intervals during the lease term. The master lease contains standard covenants requiring us to insure and maintain the equipment in accordance with the manufacturers  recommendations and comply with other customary terms to protect the leased assets. In addition, the master lease agreement contains provisions in the event of default. Assets purchased under the capital lease are included in  Property, plant and equipment, net  as manufacturing equipment and the amortization is included in depreciation. As of July 1, 2012, the gross value and net book value of manufacturing equipment purchased under a capital lease was approximately $20.5 million and $19.0 million, respectively. As of July 1, 2012, the total minimum lease payments under our capital leases amounted to approximately $17.5 million. Future minimum payments, by year and in the aggregate, under the capitalized lease consist of the following: Fiscal Year (In thousands) 2012 (remaining six months) $ 1,468 2013 2,937 2014 2,936 2015 2,937 2016 and thereafter 7,181 Total minimum lease payments 17,459 Less: amount representing interest 1,150 Present value of net minimum lease payments $ 16,309