15. Commitments and Contingencies

Operating Lease Commitments

The Company leases various office and warehouse facilities in North America and Asia under operating leases expiring through March 2022. The Company also has short term contracts of one year or less covering its third party warehouses that provide for contingent payments based on the level of sales that are processed through the third party warehouse.

The remaining future minimum rental payments under the above operating leases are as follows:

Year Ending March 31,
2017	$	3,448,000
2018		1,767,000
2019		1,587,000
2020		1,296,000
2021		1,329,000
Thereafter		1,348,000

Total minimum lease payments	$	10,775,000

During the years ended March 31, 2016, 2015 and 2014, the Company’s continuing operations incurred total operating lease expenses of $3,263,000, $3,030,000 and $2,928,000, respectively.

Commitments to Provide Marketing Allowances under Long-Term Customer Contracts

The Company has or is renegotiating long-term agreements with many of its major customers. Under these agreements, which typically have initial terms of at least four years, the Company is designated as the exclusive or primary supplier for specified categories of remanufactured alternators and starters. In consideration for the Company’s designation as a customer’s exclusive or primary supplier, the Company typically provides the customer with a package of marketing incentives. These incentives differ from contract to contract and can include (i) the issuance of a specified amount of credits against receivables in accordance with a schedule set forth in the relevant contract, (ii) support for a particular customer’s research or marketing efforts provided on a scheduled basis, (iii) discounts granted in connection with each individual shipment of product, and (iv) other marketing, research, store expansion or product development support. These contracts typically require that the Company meet ongoing standards related to fulfillment, price, and quality. The Company’s contracts with major customers expire at various dates through April 2021.

The Company typically grants its customers marketing allowances in connection with these customers’ purchase of goods. The Company records the cost of all marketing allowances provided to its customers. Such allowances include sales incentives and concessions and typically consist of: (i) allowances which may only be applied against future purchases and are recorded as a reduction to revenues in accordance with a schedule set forth in the long-term contract, (ii) allowances related to a single exchange of product that are recorded as a reduction of revenues at the time the related revenues are recorded or when such incentives are offered, and (iii) allowances that are made in connection with the purchase of inventory from a customer.

The following summarizes the breakout of allowances for our continuing operations discussed above, recorded as a reduction to revenues:

	Years Ended March 31,
	2016		2015		2014


Allowances incurred under long-term customer contracts	$	29,845,000	$	18,358,000	$	16,099,000
Allowances related to a single exchange of product		47,451,000		36,112,000		30,948,000
Allowances related to core inventory purchase obligations		2,268,000		15,540,000		2,506,000
Total customer allowances recorded as a reduction of revenues	$	79,564,000	$	70,010,000	$	49,553,000

The following presents the commitments to incur allowances, excluding allowances related to a single exchange of product, which will be recognized as a charge against revenue, and customer Remanufactured Core purchase obligations which will be recognized in accordance with the terms of the relevant long-term customer contracts:

Year Ending March 31,
2017	$	48,754,000
2018		14,311,000
2019		2,442,000
2020		1,345,000
2021		1,341,000

Total marketing allowances	$	68,193,000