Commitments and Contingencies

The Company and its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

The Company expects total capital expenditures to range from $8 million to $11 million for fiscal year 2018, primarily for IT investments.

During the Company's due diligence for the CDC and Network1 acquisitions, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. The Company is able to record indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as sufficient funds to pay those obligations were escrowed or the Company is entitled to offset those obligations against future earnout payments under the share purchase agreements. However, indemnity claims can be made up to the entire purchase price, which includes the initial payment and all future earnout payments. The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets as of September 30, 2017:



	September 30, 2017
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,194	$	1,351
Other non-current assets	$	—	$	8,600
Liabilities
Accrued expenses and other current liabilities	$	2,194	$	1,351
Other long-term liabilities	$	—	$	8,600

The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets as of June 30, 2017:



	June 30, 2017
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,212	$	1,294
Other non-current assets	$	—	$	8,235
Liabilities
Accrued expenses and other current liabilities	$	2,212	$	1,294
Other long-term liabilities	$	—	$	8,235

Changes in these contingent liabilities and receivables from June 30, 2017 are primarily driven by foreign currency translation.