Commitments And Contingencies

12 Months Ended

Mar. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

(17) COMMITMENTS AND CONTINGENCIES

Operating Lease Agreements

The Company has various equipment, office and facility operating leases. Leases expire on various dates through May 2025 and some of the leases contain clauses requiring escalating rent payments. Rent expense during 2012, 2011 and 2010 was approximately $9,177, $4,616 and $3,948, respectively.

The annual future minimum rental obligations as of March 31, 2012 are as follows:

Fiscal 2013	$	10,451
Fiscal 2014		9,069
Fiscal 2015		8,680
Fiscal 2016		7,821
Fiscal 2017		6,148
Thereafter		20,736
Total	$	62,905

During fiscal 2010, the Company relocated its corporate headquarters from Sharonville, Ohio to its Batavia, Ohio facility in order to consolidate certain employees into existing owned office space. The lease for the Sharonville, Ohio location expires in April 2017. In connection with the relocation, the Company recorded a charge of $1,219 for remaining lease obligations and other costs related to its Sharonville facility. During fiscal 2011, the Company entered into a contract to sublease the remaining unoccupied space and recorded an adjustment of $258 to the initial charge to incorporate the impact of the additional sublease income. The interest income related to the sublease of the Sharonville facility is included in the net total charge that has been recorded for the relocation of the Sharonville facility and therefore no future interest income will be recorded to the Company's statement of income.

The annual future sublease cash receipts as of March 31, 2012 are as follows:

Fiscal 2013	$	417
Fiscal 2014		430
Fiscal 2015		442
Fiscal 2016		455
Fiscal 2017		475
Thereafter		32
Total	$	2,251

Purchase Obligations

The Company has entered into long-term purchase agreements (one to three years) for various uniforms, supplies, utilities and other services. The Company has a consigned inventory agreement with a key supplier in which the Company is required to purchase all consigned inventory not consumed within three months of order. Total inventories on consignment under this arrangement were $0 at March 31, 2012. The total estimated purchase obligations are $2,243 for 2013.

Litigation

The Company is a party in a case styled DLJ South American Partners, L.P. ("DLJ") v. Multi-Color Corporation, et al., Case No. C.A. No. 7417-CS which is pending in the Delaware Court of Chancery. In a complaint filed on April 13, 2012, DLJ alleges that the Company failed to make certain payments required by the Merger and Stock Purchase Agreement (the "Merger Agreement") entered into by the Company with Adhesion Holdings, Inc., a Delaware corporation, DLJ, and Diamond Castle Partners IV, L.P., a Delaware limited partnership, ("Diamond Castle"), pursuant to which the Company acquired York Label Group. An affiliate of Diamond Castle has nominated Ari C. Benacerraf and Simon T. Roberts for election to the Board of Directors of the Company at its 2012 Annual Meeting of Shareholders. Mr. Benacerraf and Mr. Roberts are current members of the Company's Board.

DLJ seeks the payment of $6,939 and interest, legal fees and other equitable relief that the Company is unable to reasonably estimate at this time. On May 18, 2012, the Company filed an answer, counterclaim and third party complaint asserting various causes of action against DLJ, Diamond Castle and affiliated entities arising out of their breaches of the Merger Agreement and other actions.

The Company is also subject to various legal claims and contingencies that arise out of the normal course of business, including claims related to commercial transactions, product liability, health and safety, taxes, environmental, employee-related matters and other matters. Litigation is subject to numerous uncertainties and the outcome of individual claims and contingencies is not predictable. It is possible that some legal matters for which reserves have not been established could result in an unfavorable outcome for the Company and any such unfavorable outcome could have a material adverse effect on our financial condition, results of operations and cash flows.