COMMITMENTS AND CONTINGENCIES

12 Months Ended

Mar. 31, 2018

COMMITMENTS AND CONTINGENCIES [Abstract]

NOTE 13. COMMITMENTS AND CONTINGENCIES

Leases

As of March 31, 2018, our contractual obligations for our operating lease obligations for succeeding years are as follows (in thousands):

	Payments Due by Period
			Due in Fiscal
	Total		2019		2020		2021		2022		2023		Thereafter
Operating lease obligations	$	26,265	$	3,452	$	3,372	$	3,182	$	3,160	$	3,231	$	9,868

Our operating lease obligations comprised our principal facility and various leased facilities and equipment under operating lease agreements, which expire on various dates from fiscal 2018 through fiscal 2026. Our principal facilities located in Union City, California is under a non-cancelable operating lease agreement, which expires in fiscal 2026. The monthly rental payments on principal facilities lease increase based on a predetermined schedule and accordingly, we recognize rent expense on a straight-line basis over the life of the lease. Rent expense from continuing operations under operating leases was $3.3 million, $2.9 million and $2.3 million for fiscal 2018, 2017 and 2016, respectively. Rent expense from discontinued operations under operating leases was $0, $12,000, and $0 for fiscal 2018, 2017 and 2016, respectively.

Commitments

We have purchase commitments, consisting of supply and inventory related agreements, totaling approximately $21.9 million as of March 31, 2018. These purchase order commitments primarily include our purchase obligations to purchase from Diatron of Hungary through fiscal 2020.

See Note 6, “Investments in Unconsolidated Affiliates” for information on commitments due in connection with our investment in a privately-held company.

Litigation

We are involved from time to time in various litigation matters in the normal course of business. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.

ABAXIS INC 10-K