Note 16 - Commitments and Contingencies

3 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

16. Commitments and Contingencies

Revolving Credit Agreement

On November 20, 2015, we entered into Revolving Credit Agreement with a syndicate of banks whose agent is BOTW for a line of credit of $125.0 million. All amounts owed under the credit agreement are due and payable on November 20, 2017. Borrowings may be repaid and re-borrowed at any time during the term of the credit agreement. The obligations are guaranteed by four of our subsidiaries. The loan is collateralized pursuant to a Contingent Collateral Agreement under which the assets of the parent company and the four subsidiaries could be subject to security interests for the benefit of the banks in the event of a loan default. The credit agreement includes a letter of credit subfacility, under which BOTW agrees to issue letters of credit of up to $10.0 million. However, borrowing under this subfacility is limited to the extent of availability under the $125.0 million revolving line of credit. During the first quarter ended June 30, 2016, we made a principal repayment of $7.0 million. At June 30, 2016, the outstanding principal under the credit agreement was $73.0 million. See Note 9, “Borrowing Arrangements” for further information regarding the terms of the credit agreement.

Other Commitments and Contingencies

On occasion, we provide limited indemnification to customers against intellectual property infringement claims related to our products. To date, we have not experienced significant activity or claims related to such indemnifications. We also provide in the normal course of business indemnification to our officers, directors and selected parties. We are unable to estimate any potential future liability, if any. Therefore, no liability for these indemnification agreements has been recorded as of June 30, 2016 and March 31, 2016.

On July 1, 2016, in connection with an income tax audit of our subsidiary in the Philippines for fiscal year ended March 31, 2010, we received a notice from the Philippine Bureau of Internal Revenue, or BIR, that they upheld an initial assessment for a deficiency of income taxes, inclusive of interest and penalties, of approximately $2.5 million. In accordance with our rights, we have filed an appeal before the Philippine Court of Tax Appeals, or CTA. While there are no assurances that we will prevail, we believe that we have a valid legal reason to challenge the BIR’s decision and that our appeal before the CTA will merit a favorable resolution. Accordingly, we have not accrued any amount for this matter.