Financing Arrangements

12 Months Ended

Mar. 31, 2017

The following is a summary of long-term obligations at March 31, 2017, and 2016:



(In thousands)	2017			2016
Capital lease obligations	$	237		$	333
Less: current maturities	(121		)	(118		)
Long -term capital lease obligations	$	116		$	215

Capital Leases

Agilysys leases certain equipment under capital leases expiring in various years through fiscal 2020. The assets and liabilities under capital leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the asset. The assets are depreciated over the shorter of their related lease terms or their estimated productive lives. Assets recorded under capital leases were $0.7 million and $0.8 million, as of March 31, 2017 and 2016, respectively. Accumulated depreciation related to assets recorded under capital leases was $0.5 million and $0.3 million as of March 31, 2017 and 2016, respectively. Depreciation of assets under capital leases is included in depreciation expense.

Minimum future lease payments under capital leases as of March 31, 2017, are as follows:



(In thousands)	Amount
Fiscal year ending March 31,
2018	$	129
2019	110
2020	7
Total minimum lease payments	$	246
Less: amount representing interest	(9		)
Present value of minimum lease payments	$	237

Interest rates on capitalized leases of 3.5% are imputed based on the lower of our incremental borrowing rate at the inception of each lease or the lessor's implicit rate of return.