5.	COMMITMENTS AND CONTINGENCIES

Commitments

The Company has entered into various operating leases for buildings and for office and computer equipment. Rental expense under these leases was $1,736, $1,730 and $1,533 in 2017, 2016 and 2015, respectively.

At December 31, 2017 future minimum lease payments under non-cancelable operating leases for the next five years and in the aggregate are as follows:

2018	$	752
2019		337
2020		151
2021		129
2022		122
Thereafter		447
	$	1,938

The Company has also entered into arrangements with third-party lenders where it has agreed, in the event of a default by the independent distributor customer, to repurchase from the third-party lender Company products repossessed from the independent distributor customer. These arrangements are typically subject to a maximum repurchase amount. The Company’s risk under these arrangements is mitigated by the value of the products repurchased as part of the transaction. The maximum amount of collateral the Company could be required to purchase was approximately $54,093 and $45,196 at December 31, 2017 and 2016, respectively. No repurchases of products were required during 2017 or 2016.

During 2017, the Company substantially completed the consolidation and expansion of its Pennsylvania manufacturing operations to increase capacity and improve operating efficiencies. The manufacturing operations of the two primary Pennsylvania locations were consolidated at one expanded location and, in June 2017, the Company sold the remaining plant location and realized a net gain of $601 on the property. As of December 31, 2017, only a de minimis amount of costs were remaining of the $24,700 total project costs. These project costs are included in property, plant and equipment, net on the consolidated balance sheets.

The Company also continued several capital projects during 2017 involving machinery and equipment and building improvements at its Ooltewah, Tennessee and Greeneville, Tennessee facilities that it currently estimates will cost in total approximately $21,200. Approximately $21,000 of these costs were incurred as of December 31, 2017 and are included in property, plant and equipment, net on the consolidated balance sheets. The remainder of these costs are expected to be incurred during the first quarter of 2018. In addition, the Company began construction on an administrative building at its Ooltewah, Tennessee facility in June 2017. The current estimated costs of this project are approximately $4,200. Approximately $1,581 of these costs were incurred as of December 31, 2017, and the remaining costs are expected to be incurred during the first half of 2018. The timing and cost of these projects are subject to change.

Contingencies

The Company is, from time to time, a party to litigation arising in the normal course of its business. Litigation is subject to various inherent uncertainties, and it is possible that some of these matters could be resolved unfavorably to the Company, which could result in substantial damages against the Company. The Company has established accruals for matters that are probable and reasonably estimable and maintains product liability and other insurance that management believes to be adequate. Management believes that any liability that may ultimately result from the resolution of these matters in excess of available insurance coverage and accruals will not have a material adverse effect on the consolidated financial position or results of operations of the Company.