COMMITMENTS AND CONTINGENCIES

12 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

LITIGATION

Gaiam Dispute

Since 2014, Gaiam and we have been engaged in various legal disputes relating to Gaiam's sales of its entertainment media distribution business to Cinedigm. In a settlement agreement made effective as of September 29, 2015, Gaiam and we agreed to the following; (1) a mutual release of all claims, with only one exception (described immediately below), that the parties held against each other; (2) the commencement of a further arbitration to resolve our single preserved claim that we did not receive all of the cash collected by Gaiam on our behalf during the transition period following the sale (the "Cash Reconciliation Claim"); and (3) Gaiam would pay $2.3 million to us, which we recorded as income in our second fiscal quarter. In a further settlement agreement executed in January 2016 and made effective as of December 31, 2015, Gaiam and we agreed to resolve the Cash Reconciliation Claim in exchange for a further payment to us by Gaiam in the amount of $1.6 million, which was recorded in our fourth fiscal quarter.

As a result, all legal disputes between the parties have now been finally and fully settled. The parties' settlements do not constitute an admission by either party of any liability or wrongdoing whatsoever.

We are subject to certain legal proceedings in the ordinary course of business. We do not expect any such items to have a significant impact on our financial position and results of operations and liquidity.

LEASES

We have capital lease obligations covering a facility and computer equipment with an aggregate principal amount of $4.2 million as of March 31, 2016. In May 2011, we completed the sale of certain assets and liabilities of the Pavilion Theatre and ceased to operate it at that time. We have remained the primary obligor on the Pavilion capital lease and therefore, the capital lease obligation and the related assets under the capital lease continue to be reflected on our Consolidated Balance Sheets as of March 31, 2016 and 2015. We have entered into a sub-lease agreement with the unrelated third party purchaser who makes all payments related to the lease and as such, we have no continuing involvement in the operation of the Pavilion Theatre.

We operate from leased properties under non-cancelable operating lease agreements, certain of which contain escalating lease clauses. As of March 31, 2016, obligations under non-cancelable operating leases are due as follows (dollars in thousands):



Fiscal years ending March 31,
2017	$	1,413
2018	1,405
2019	1,279
2020	1,330
2021	1,384
Thereafter	600
	$	7,411

Rent expense, included in selling, general and administrative expenses in our Consolidated Statements of Operations, was $1.8 million and $1.6 million for the fiscal years ended March 31, 2016 and 2015, respectively.