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Note 11 - Lease Arrangements | 12 Months Ended
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Mar. 31, 2017
Notes to Financial Statements |
Commitments Disclosure [Text Block] |
11. | LEASE ARRANGEMENTS
The Company has operating lease commitments for office equipment and its office and maintenance facilities. The Company leases property used for its corporate offices from a company controlled by certain of the Company’s former officers and directors. The lease for this facility provides for monthly rent of $14,862 and expires on January 31, 2018, though the lease may be renewed by us for three additional two -year option periods through January 31, 2024. The Company relocated its corporate offices to an owned facility in July 2017 and does not expect to renew this lease. The Company leases approximately 53,000 square feet of a 66,000 square foot aircraft maintenance facility located in Kinston, North Carolina under an agreement that extends through January 2023, with the option to extend the lease for four additional five -year periods thereafter. The Company has calculated rent expense under the current lease term. GGS leases its production facility under an agreement that extends through August 2019. GAS leases several maintenance facilities across the country and an administrative office in Eagan, Minnesota. Most of the leases are on one year agreements with renewal clauses, but some of these are multi-year leases extending out as far as March 2021. Delphax Canada leased its production facility in Mississauga, Ontario under an agreement extending through August 2018. Annual rents remaining under the agreement were CDN $384,000 (approximately $288,000 using the March 31, 2017 exchange rate) per year. In addition, Delphax Canada was obligated to pay as additional rent the related operating expenses of the landlord. Under the terms of the lease, Delphax Canada is also subject to a facility restoration obligation. This lease has been terminated effective upon removal of the property foreclosed upon by Air T, see Note 9 and Note 24. Delphax has office space in the United Kingdom under an operating lease that extends through January 201 8. The annual lease payment for this facility is £62,400 (approximately $78,000 using the March 31, 2017 exchange rate). In addition to the contracted lease amount, the lease payments include a pro rata portion of the operating expenses incurred by the landlord. A newly organized subsidiary of Air T leases 12,206 square feet of space in a building located in Mississauga, Ontario. The lease commenced on August 1, 2017 and terminates on July 31, 2020. Annual rent under the lease escalates annually, with annual rent of approximately $94,600 (CDN) for the first year and approximately $97,000 (CDN) in the third year. The subsidiary’s obligations under the lease have been guaranteed by Air T. Contrail Aviation leases a 21,000 square foot facility in Verona, Wisconsin. The lease for this facility expires on July 17, 2021, though Contrail Aviation has the option to renew the lease on the same terms for an additional five -year period. The lease provides for monthly rent of approximately $13,000 (see Note 23 ). Jet Yard leases approximately 48.5 acres of land under a lease agreement with Pinal County, Arizona. The lease expires in May 2046 with an option to renew for an additional 30 -year period (though the lease to a 2.6 acre parcel of the leased premises may be terminated by Pinal County upon 90 days ’ notice). The lease provides for an initial annual rent of $27,000, which rental rate escalates based on a schedule in annual increments during the first seven years of the lease (at which time the annual rental rate would be $152,000 ), and increases by an additional five percent for each three -year period thereafter. The lease agreement permits Pinal County to terminate the lease if Jet Yard fails to make substantial progress toward the construction of facilities on the leased premises in phases in accordance with a specified timetable, which includes, as the initial phase, the construction of a demolition pad to be completed by March 2017 and, as the final and most significant phase, the construction of an aircraft maintenance hangar large enough to house a Boeing B777 - 300 by the first quarter of 2021. The construction of the demolition pad specified under the lease has not been completed, and Jet Yard and Pinal County are in discussions with respect to improvements on the leased premises. At March 31, 2017 , future minimum annual lease payments (foreign currency amounts translated using applicable March 31, 2017 exchange rates) under non-cancelable operating leases with initial or remaining terms of more than one year are as follows:
Year ended March 31, |  |  |  |
2018 |  | $ | 3,256,000 |
2019 |  |  | 2,076,000 |
2020 |  |  | 1,453,000 |
2021 |  |  | 842,000 |
2022 |  |  | 725,000 |
Thereafter |  |  | 5,103,000 |
Total minimum lease payments |  | $ | 13,455,000 |
The Company ’s rent expense excluding Delphax for operating leases totaled approximately $3,872,000 and $3,038,000 for fiscal 2017 and 2016, respectively, and includes amounts to related parties of $289,000 and $178,000 in fiscal 2017 and 2016, respectively. Delphax’s rent expense for the fiscal year ended March 31, 2017 was approximately $391,000 compared to $226,000 from November 24, 2015 through March 31, 2016.

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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