Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments

As of December 31, 2017, the Company had outstanding purchase orders totaling $6,528,000 to purchase inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate to expected sales in 2018.

The Company conducts certain of its operations in leased facilities. These lease agreements expire at various dates through 2024 and are accounted for as operating leases. Certain of these leases contain renewal options, retirement obligations, escalation clauses, rent holidays, and leasehold improvement incentives. Annual rental expense totaled $6,738,000 in 2017, $6,090,000 in 2016, and $5,778,000 in 2015.

Future minimum rental payments under these agreements are as follows (in thousands):



Year Ended December 31,	Amount
2018	$	5,762
2019	4,087
2020	2,962
2021	2,371
2022	1,219
Thereafter	865
	$	17,266

The Company owns buildings adjacent to its corporate headquarters that are partially occupied with tenants who have lease agreements that expire at various dates through 2021. Annual rental income totaled $1,474,000 in 2017, $1,911,000 in 2016, and $1,921,000 in 2015. Rental income and related expenses are included in “Other income (expense)” on the Consolidated Statements of Operations. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands):



Year Ended December 31,	Amount
2018	$	835
2019	848
2020	862
2021	492
2022	305
Thereafter	—
	$	3,342

Contingencies

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.