Commitments

Leases

We lease facilities for all of our most significant locations 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, 2015, 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 the 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 lease agreement for 6,480 square feet of office space in the Los Angeles metro area. The lease term extends through December 31, 2018.

In November 2012, we entered into a 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, which we had received as of March 31, 2015. As of March 31, 2014, this amount was recorded as a receivable and is included in other current assets in our Consolidated Balance Sheets.

In September 2013, we entered into a lease agreement for 3,977 square feet of office space in downtown Portland. The lease term extends through 2019, and includes free rent provisions and a tenant improvement allowance of $0.2 million.

In September 2014, we entered into a lease agreement for 4,859 square feet of office space in downtown Portland. The lease term extends through 2019, and includes free rent provisions and a tenant improvement allowance of 0.2 million.

In connection with the sale of the PPT^® business to Vobile, Inc. (see Note 18), we are subleasing a portion of the rentable square footage of the Portland HQ building. Pursuant to the sublease, Vobile will be renting 6,170 square feet, commencing as of February 2015 and continuing until the earlier of December 31, 2015 or the date upon which the space is surrendered. Vobile has an option to extend the term to December 31, 2016 by written notice. For the three months ended March 31, 2015, the Company has recorded $21,000 as a credit to rent expense, included in selling, general and administrative expense in our Consolidated Statement of Operations.

Minimum lease payments over the terms of the leases exceeding one year were as follows at March 31, 2015 (dollars in thousands):



Year Ending March 31,
2016	$	3,018
2017	3,013
2018	2,555
2019	2,153
2020	1,946
Thereafter	4,181
Total minimum lease payments	$	16,866

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 $2.9 million in Fiscal 2015, $2.5 million in Fiscal 2014 and $2.7 million in Fiscal 2013.