Commitments

Leases

We lease certain facilities under operating leases expiring at various dates through 2023. In December 2010, we amended the lease for our headquarters located in Portland, Oregon. The term of the lease was extended through 2026 with an option to terminate in 2021. This amendment, which was effective January 2011, lowered occupancy expenses over the next five years and includes a tenant improvement allowance of $0.8 million. As of March 31, 2013, we have received $0.6 million from the landlord related to the tenant improvements. Total square footage occupied after the amendment is 58,818 square feet. In addition, we received a $0.5 million forgivable loan from the State of Oregon in April 2011 for tenant improvements. This loan was forgiven in April 2013, see Note 9.

Also in December 2010, we negotiated tax credits with the City of Portland and State of Oregon related to our leased facilities that are based on capital spending and are expected to lower our overall state and local property and income tax obligations for the next five years from that date.

In April 2012, we entered into a new lease agreement for 83,028 square feet of office space in Los Angeles. The lease term extends through December 31, 2018.

In November 2012, we entered into a new lease agreement for 12,200 square feet of office space in New York City. The lease term extends through June 30, 2023 and includes a tenant improvement allowance of $0.6 million. As of March 31, 2013, this amount has been recorded as a receivable and is included in Other Current Assets on our Consolidated Balance Sheets.

Minimum lease payments over the terms of the leases exceeding one year were as follows at March 31, 2013 (dollars in thousands):



Year Ending March 31,
2014	$	2,499
2015	2,532
2016	2,116
2017	2,003
2018	2,020
Thereafter	7,234
Total minimum lease payments	$	18,404

The leases require us to pay for taxes, insurance and maintenance and contain escalation clauses. Rent expense under operating leases is recognized, net of the amortization of deferred rent, on a straight-line basis over the terms of the leases and was approximately $2.7 million in Fiscal 2013, $2.0 million in Fiscal 2012 and $2.2 million in Fiscal 2011.