17. COMMITMENTS AND CONTINGENCIES

Contractual obligations

The Company's contractual obligations primarily relate to various operating lease agreements for office space, equipment and land for various periods that extend through as late as fiscal 2100. Total rent payments under these agreements were approximately $24.3 million, $26.0 million and $30.9 million, respectively, for fiscal 2011, 2010 and 2009. Certain of these lease agreements contain provisions for renewal options and escalation clauses.

The Company also has commitments under various advertising and charitable contribution agreements totaling $9.2 million and $600,000, respectively, at March 31, 2011. Total expense related to these agreements was approximately $7.8 million, $7.6 million and $3.7 million, respectively, for fiscal 2011, 2010 and 2009.

The following table summarizes our payments under contractual obligations as of March 31, 2011 (in thousands):

	Payment Due by Period as of March 31,
													2017 and
	Total		2012		2013		2014		2015		2016		Thereafter
Contractual obligations:
Operating leases	$	262,048	$	21,016	$	16,013	$	13,649	$	9,400	$	6,098	$	195,872
Other		9,750		6,250		2,550		450		250		250
Total	$	271,798	$	27,266	$	18,563	$	14,099	$	9,650	$	6,348	$	195,872

The Company also leases space within the Company's headquarters facility to business tenants. Total cash receipts relating to these lease spaces totaled $2.2 million, $870,000 and $1.1 million, respectively, for fiscal 2011, 2010 and 2009.

The following is a schedule of future minimum lease rental commitments (in thousands):

	Payment Due by Period as of March 31,
													2017 and
	Total		2012		2013		2014		2015		2016		Thereafter

Lease rental commitments	$	25,668	$	4,731	$	4,894	$	5,101	$	5,231	$	4,161	$	1,550

Settlement

In March 2005, the Company settled all of its outstanding litigation with International Business Machines Corporation (“IBM”). Under the settlement agreement and subsequent clarifications, IBM and the Company entered into a business arrangement whereby IBM was committed to purchase software licenses and maintenance from the Company totaling $140 million over five years ending in fiscal 2010 ($20 million in fiscal 2006, $30 million in each of the following four years).

During fiscal 2010 and 2009, IBM utilized $9.3 million and $12.1 million, respectively, of their license and maintenance commitment, resulting in an unused commitment balance of $20.7 million and $17.9 million, respectively, for fiscal 2010 and 2009. The unused commitment amounts are reported as “settlement” in the consolidated statements of operations and recognized as income in the fourth quarter of each respective fiscal year. There were no payment or purchase commitment requirements under this agreement during fiscal 2011 as these provisions expired on March 31, 2010.

Legal Matters

From time to time, the Company is subject to legal proceedings, claims, investigations and proceedings in the ordinary course of business. In accordance with U.S. GAAP, the Company makes a provision for a liability when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. However, the Company believes it has valid defenses with respect to the legal matters pending against the Company. It is possible, nevertheless, that our consolidated financial position, cash flows or results of operations could be materially affected by the resolution of one or more of such contingencies.