Commitments

The Company has operating leases on real property and equipment that expire at various dates. The Company has been operating a component fabrication operation in this building since 1998 under a series of 10-year leases. The current lease would have expired in March 2018. In August 2017, the Company purchased this facility for $7,200,000 with Virco making a 20% down payment and the seller providing financing for the remaining balance of $5,760,000 for 20 years at a fixed rate of 4% per year. The Torrance, CA office, manufacturing and distribution facility is leased under a series of 5-year operating lease that would have expired on February 28, 2020. On November 14, 2017, the Company entered into a fourth amendment which extends the term of the lease for an additional 62 months through April 30, 2025, and provides for monthly base lease payments that increase after each 12-month period. The monthly base lease payments range from approximately $396,890.00 per month (which applies for the period from May 1, 2020 to February 28, 2021) to $446,703.19 per month (which applies for the period from March 1, 2024 to April 30, 2025). The Company leases machinery and equipment under a 5-year operating lease arrangement. The Company has the option of buying out the assets at the end of the lease period. The Company leases trucks, automobiles, and forklifts under operating leases that include certain fleet management and maintenance services. Certain of the leases contain renewal or purchase options and require payment for property taxes and insurance. The Company records rent expense on a straight-line basis based on contractual lease payments. Allowances from lessors for tenant improvements have been included in the straight-line rent expense for applicable locations. Tenant improvements are capitalized and depreciated over the remaining life of the applicable lease.

Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2018, are as follows:



Year ending January 31,
2019	$	4,386
2020	4,219
2021	3,970
2022	4,927
2023	5,040
Thereafter	11,879
Total minimum lease payments	$	34,421

Rent expense relating to operating leases was as follows (in thousands):



Year ended January 31,
2018	$	5,644
2017	5,735
2016	5,681

The Company has issued purchase commitments for raw materials at January 31, 2018, of approximately $12,646,000. There were no commitments in excess of normal operating requirements.