The Company leases certain property, plant and equipment under non-cancellable capital and operating lease agreements. These leases vary in duration and contain renewal options and/or escalation clauses. Current and long-term obligations under capital leases are included in the Company’s Consolidated Balance Sheets.

Estimated future minimum lease payments under leases having initial or remaining non-cancelable lease terms more than one year as of December 28, 2018 are as follows (in thousands):

Year Ended	Operating Leases		Capital Leases
2019	$	2,606	$	1,153
2020		2,202		332
2021		980		143
2022		507		4
2023		202		—
Thereafter		12		—
Total minimum lease payments, including interest	$	6,509	$	1,632
Less amounts representing interest		—		75
Total minimum lease payments	$	6,509	$	1,557

	Years Ended
	2018		2017		2016
Rent expense	$	2,293	$	2,436	$	2,243

The Company had the following assets under capital lease at December 28, 2018 and December 29, 2017 (in thousands):

	2018		2017
Machinery and equipment	$	2,650	$	1,430
Furniture and fixtures		1,925		1,611
Leasehold improvements		27		—
Total assets under capital lease, gross	$	4,602	$	3,041
Less accumulated depreciation		1,274		581
Total assets under capital lease, net	$	3,328	$	2,460

Depreciation expense for assets under capital lease was as follows (in thousands):

	Years Ended
	2018		2017		2016
Depreciation expense	$	760	$	580	$	220

As of December 28, 2018, there were open purchase orders of $4,668,000 and severance payable of $41,000.

The Company has entered into indemnification agreements with its directors and officers that may require the Company: (a) to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, except as prohibited by applicable law; (b) to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and (c) to make a good faith determination whether or not it is practicable for the Company to obtain directors’ and officers’ insurance. The Company currently has directors’ and officers’ liability insurance through a third-party carrier. Also, in connection with the sale of products and entering into business relationships in the ordinary course of business, the Company may make representations affirming, among other things, that its products do not infringe on the intellectual property rights of others and agrees to indemnify customers against third-party claims for such infringement as well as its negligence. The Company has not been required to make material payments under such provisions.

The Company’s tax filings are subject to audit by taxing authorities in jurisdictions where it conducts business. These audits may result in assessments of additional taxes that are subsequently resolved with the authorities or potentially through the courts. Management believes the Company has adequately provided for taxes; however, final assessments, if any, could be significantly different than the amounts recorded in the consolidated financial statements.

The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all its assets, or termination “without cause or for good reason” as defined in the employment agreements.

From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. The most significant of these actions, proceedings and investigations, both of which were resolved and disclosed prior to the filing of this Annual Report on Form 10-K, are described below. STAAR maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company’s financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm.

On July 8, 2014, a putative securities class action lawsuit was filed by Edward Todd against STAAR and three officers in the U.S. District Court for the Central District of California. The plaintiff claimed that STAAR made misleading statements to and omitted material information from our investors between February 27, 2013 and September 29, 2014 about alleged regulatory violations at STAAR’s Monrovia manufacturing facility. On June 20, 2017, plaintiff sought preliminary approval of a proposed class action settlement in the amount of $7,000,000. On or about July 28, 2017, the Company’s insurance carriers directly funded the entire settlement amount to the court-authorized escrow account. On October 23, 2017, the court granted plaintiff’s application for final approval of the class action settlement in the amount of $7,000,000.

On June 21, 2016, Kevin Forestal filed a stockholder derivative complaint against our then-current Board of Directors. On January 31, 2017, the court granted the Company’s Motion to Dismiss. On June 29, 2018, the Ninth Circuit Court of Appeals affirmed the District Court’s ruling dismissing the complaint.