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Commitments and contingencies
9 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies
Commitments and contingencies
 
Indemnities and commitments
 
During the ordinary course of business, the Company makes certain indemnities and commitments under which it may be required to make payments in relation to certain transactions. These indemnities include indemnities of certain customers and licensees of our technologies, and indemnities to the Company’s directors and officers to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities and commitments varies, and in certain cases, is indefinite. The majority of these indemnities and commitments do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities and commitments in the accompanying condensed consolidated balance sheets. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is reasonably probable and estimable.
 
The Company has entered into contracts with certain of its vendors. Future obligations under such contracts totaled $15.7 million at December 31, 2015 and include revolving 90-day supply commitments. Many of the contracts contain cancellation penalty provisions requiring payment of up to 20% of the unused contract.
 
Contingencies and assessments
 
The Company is subject to various contingencies and assessments arising in the course of its business, some of which relate to litigation, claims, professional services, customer credits and rebates, system upgrades and maintenances, property taxes, sales and use taxes and tax assessments for goods and services. The Company considers the likelihood of the loss or the incurrence of a liability, as well as the Company’s ability to reasonably estimate the amount of loss in determining loss contingencies and assessments. An estimated loss contingency or assessment is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to us to determine whether such accruals are necessary or the amounts accrued should be adjusted. Based on the information presently available, including discussion with counsel and other consultants, management believes that resolution of these matters will not have a material adverse effect on the Company’s business, consolidated results of operations, financial condition or cash flows.

On November 8, 2015, the Company entered into an Agreement and Plan of Merger, or the Merger Agreement, with
Rhombus Cinema Holdings, LLC, a Delaware limited liability company, or Purchaser, and Rhombus Merger Sub, Inc., or
Merger Sub. Pursuant to the Merger Agreement, and upon the terms and conditions set forth therein, Merger Sub will merge
with and into the Company, with the Company continuing as the surviving corporation. As a result, the Company will become a
wholly owned subsidiary of Purchaser. Purchaser and Merger Sub are affiliates of Rizvi Traverse Management, LLC. This
transaction is referred to herein as the Merger. On November 8, 2015, the Company incurred a $1.5 million expense for
advisory services. As of December 31, 2015, we incurred a total $5.8 million expense for legal, advisory and other professional services in connection with the Merger.

Upon the close of the Merger (see Note 1 "Business and Basis of Presentation"), which is expected in the fourth quarter of the Company's fiscal year ending on March 31, 2016, or shortly thereafter, the Company will incur a transaction fee to its financial adviser equivalent to 1.25% of the total consideration received or to be received for the sale, issuance or exchange of the Company's securities. If the transaction is terminated under certain circumstances, the Company may be required to pay a termination fee of $24 million to Purchaser and Merger Sub and reimburse the expenses of Purchaser and Merger Sub up to an amount of $6 million. If Purchaser terminates the transaction under certain circumstances, Purchaser may be required to pay a termination fee to the Company and the Company would be required to pay 20% of such termination fee to its financial adviser.