TeleNav 2015 Annual Report Download - page 104

Table of Contents
balances were allocated based on relative fair values of the related reporting units. We also tested goodwill for impairment as of July 1, 2014 and
did not recognize any impairment.
We tested goodwill for impairment on April 1, 2015 at the reporting unit level using a combination of a discounted cash flow analysis and
market multiples based upon historical and projected financial information. The fair value of the automotive and advertising reporting units was
estimated using the discounted cash flow approach. The estimated fair value of our mobile navigation reporting unit was determined using a
combined discounted cash flow and market multiple approach with equal weighting given to the two approaches. The market multiple approach
utilized revenue multiples from guideline public companies operating in similar industries. The revenue multiples were applied to the projected
financial information of the mobile navigation reporting unit to determine its fair value. We applied our best judgment when assessing the
reasonableness of the financial projections used to determine the fair value of each reporting unit. Based on the results of our annual goodwill
impairment test as of April 1, 2015, the estimated fair value of our mobile navigation business exceeded its carrying value by 22% .
Other accrued expenses
Other accrued expenses consist of the following (in thousands):
The overpayment from customers will either be refunded or be applied to future amounts owed to us.
6. Commitments and contingencies
Our primary facilities located in Sunnyvale and Culver City, California, Shanghai and Xi’an, China, and Cluj, Romania, as well as certain
other facilities in various locations in the United States, Germany and Brazil, are leased under noncancelable operating lease arrangements. As of
June 30, 2015 , future minimum operating lease payments, net of sublease income, by fiscal year were as follows (in thousands):
As of June 30, 2015 , the total minimum sublease income to be received in the next three years was $3.5 million , which is comprised of
$1.4 million to be received in fiscal 2016 , $1.4 million to be received in fiscal 2017 and $659,000 to be received in fiscal 2018 .
Rent expense was $3.8 million , $4.1 million and $4.8 million for fiscal 2015 , 2014 and 2013 , respectively. Facility exit costs included in
restructuring costs in fiscal 2015 , 2014 and 2013 were $1.2 million , $2.0 million and $124,000 , respectively.
Purchase obligations
As of June 30, 2015 , in addition to our lease obligations, we had an aggregate of $2.1 million of future minimum noncancelable financial
commitments primarily related to license fees due to certain of our third party content providers over the next two fiscal years. The aggregate of
$2.1 million of future minimum commitments is comprised of $1.8 million due in fiscal 2016 and $277,000 due in fiscal 2017 . The above
commitment amounts exclude amounts already recorded on the consolidated balance sheet.
F-20
June 30,
2015 2014
Overpayments from customers
$
4,976
$
6,508
Other
5,942
5,835
Other accrued expenses
$
10,918
$
12,343
Fiscal Year:
2016
$
6,508
2017
4,665
2018
4,916
2019
5,410
2020
2,265
Total minimum lease payments
$
23,764