Commitments and Contingencies (Notes) |
3 Months Ended |
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Jun. 30, 2018 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies |
Commitments and Contingencies
Litigation and Contingency Reserves
The Company and its subsidiaries are involved in various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that may be incorporated in the Company’s products, which are being handled and defended in the ordinary course of business. These matters are in various stages of investigation and litigation, and they are being vigorously defended. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and it records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. As of June 30, 2018, and March 31, 2018, the Company has not recorded any contingent liability attributable to existing litigation.
In the ordinary course of operations the Company receives claims where the Company believes an unfavorable outcome is possible and/or for which is probable and no estimate of possible losses can currently be made. A significant customer was a defendant in two patent infringement claims and is asserting possible indemnity rights under contracts with the Company. The customer has settled one matter, and won summary judgment for all claims in the other. The customer has informed the Company that the customer intends to seek to recover from the Company a share of the settlement and defense costs. For the settled case, the customer recently provided an initial unsubstantiated claim with an allocation of their settlement and defense costs in a range of up to $315,000. For the summary judgment case, the customer provided an initial allocation of their defense costs in a range of up to $160,000. At this time, the Company does not have a specific estimate within either range or a true lower limit of the ranges with any degree of certainty for either claim, and therefore, we can only disclose the recent claims. The Company is seeking additional information to fully evaluate the of the facts to calculate the lower end of the ranges, which will vary depending upon, among other things, the Company's contribution ratio. Both of these claims relate to a business which was previously sold and therefore any future expense would be presented as discontinued operations.
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