17.

Commitments and Contingencies

Commitments

We rent certain of our facilities under operating leases expiring through fiscal

2022.

Future operating leases and commitments for the purchase of inventory and property and equipment were as follows (in thousands):

Fiscal Year Ended March 31,	Operating Leases		Other Purchase Obligations
2018	$	1,350	$	23,700
2019		1,209		2,776
2020		1,087		-
2021		667		-
2022		473		-
Total minimum payments	$	4,786	$	26,476

Rent expense for fiscal years ended

March 31, 2017,

2016

and

2015

amounted to

$1.5

million,

$1.6

million and

$1.4

million, respectively.

As of

March 31, 2017

and

2016,

we had cash deposits with financial institutions of

$1.3

million and

$277,000,

respectively, which were restricted as to use and represent funds segregated for pension payments in Germany. These balances are included in restricted cash on our audited consolidated balance sheets.

Revolving Credit Agreement

See Note

“Borrowing Arrangements” for information regarding the terms of the credit agreement.

Legal Proceedings

April 17, 2017,

North Plate Semiconductor, LLC, or NPS, filed an action for patent infringement against us in the United States District Court for the Eastern District of Michigan, alleging that certain of our IGBTs and power MOSFETs sold in the United States infringe U.S. patents owned by NPS. NPS accused us of infringing the following U.S. patents:

6,617,641;

6,620,653;

6,667,515;

6,717,210;

6,765,239

and

6,936,893.

NPS’s complaint sought unspecified damages, but

not

less than a reasonable royalty on our products that NPS accused of infringement. In its complaint, NPS contended that our alleged infringement of NPS’s patents had been and continued to be willful and sought trebled damages.

There can be

assurance of a favorable outcome in the NPS suit. Although we believe that we have meritorious defenses to the claims of infringement set forth in NPS’s complaint, in the event of an adverse outcome, damages awarded by the U.S. District Court could be materially adverse to our financial condition, results of operations or cash flows.

We are also involved in a variety of other legal matters that arise in the normal course of business. Based on information currently available, management does

not

believe that the ultimate resolution of these matters will have a material adverse effect on our financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs.

Other Commitments and Contingencies

We make strategic investments in other companies from time to time. These investments include commitments in certain instances to provide additional financing up to the contracted amount. These commitments are insignificant individually or in aggregate.

We have ongoing income tax audits of our subsidiary in the Philippines for the fiscal years ended

March 31, 2010

and

2011.

The Philippine Bureau of Internal Revenue, or BIR, has made an assessment for a deficiency of income taxes, inclusive of interest and penalties, of approximately

$2.5

million and

$156,000,

respectively, for the fiscal years

2010

and

2011.

We are vigorously contesting the assessments of both years. While there are

assurances that we will prevail, we believe that we have valid legal reasons to challenge the BIR’s decision and that our appeals will merit a favorable resolution. Accordingly, we have

not

accrued any amount for this matter.