remarketing proceeds and the lease balance , up to the maximum recourse amount of $ 90.8 million ( 201cresidual value guarantee 201d ) . in august 1999 , we entered into a five-year lease agreement for our other two office buildings that currently serve as our corporate headquarters in san jose , california . under the agreement , we have the option to purchase the buildings at any time during the lease term for the lease balance , which is approximately $ 142.5 million . the lease is subject to standard covenants including liquidity , leverage and profitability ratios that are reported to the lessor quarterly . as of november 28 , 2003 , we were in compliance with all covenants . in the case of a default , the lessor may demand we purchase the buildings for an amount equal to the lease balance , or require that we remarket or relinquish the buildings . the agreement qualifies for operating lease accounting treatment under sfas 13 and , as such , the buildings and the related obligation are not included on our balance sheet . we utilized this type of financing because it allows us to access bank-provided funding at the most favorable rates and allows us to maintain our cash balances for other corporate purposes . at the end of the lease term , we can purchase the buildings for the lease balance , remarket or relinquish the buildings . if we choose to remarket or are required to do so upon relinquishing the buildings , we are bound to arrange the sale of the buildings to an unrelated party and will be required to pay the lessor any shortfall between the net remarketing proceeds and the lease balance , up to the maximum recourse amount of $ 132.6 million ( 201cresidual value guarantee 201d ) . there were no changes in the agreement or level of obligations from the end of fiscal 2002 . we are in the process of evaluating alternative financing methods at expiration of the lease in fiscal 2004 and believe that several suitable financing options will be available to us . as of november 28 , 2003 , future minimum lease payments under noncancelable operating leases and future minimum sublease income under noncancelable subleases are as follows : fiscal year future minimum lease payments future minimum sublease income .
what is the net cash outflow related to future lease payments in 2004?
royalties we have certain royalty commitments associated with the shipment and licensing of certain products . royalty expense is generally based on a dollar amount per unit shipped or a percentage of the underlying revenue . royalty expense , which was recorded under our cost of products revenue on our consolidated statements of income , was approximately $ 14.5 million , $ 14.4 million and $ 14.1 million in fiscal 2003 , 2002 and 2001 , respectively . guarantees we adopted fin 45 at the beginning of our fiscal year 2003 . see 201cguarantees 201d and 201crecent accounting pronouncements 201d in note 1 of our notes to consolidated financial statements for further information regarding fin 45 . legal actions in early 2002 , international typeface corporation ( 201citc 201d ) and agfa monotype corporation ( 201camt 201d ) , companies which have common ownership and management , each charged , by way of informal letters to adobe , that adobe's distribution of font software , which generates itc and amt typefaces , breaches its contracts with itc and amt , respectively , pursuant to which adobe licensed certain rights with respect to itc and amt typefaces . amt and itc further charged that adobe violated the digital millennium copyright act ( 201cdmca 201d ) with respect to , or induced or contributed to , the infringement of copyrights in , itc 2019s and amt's truetype font software. .