18. COMMITMENTS AND CONTINGENCIES

Operating Leases

The company leases certain facilities, equipment and parcels of land under agreements that expire at various dates. For accounting purposes, rent expense is based on a straight-line amortization of the total payments required over the lease. The company incurred lease expenses of $38.8 million, $45.8 million and $38.0 million during the years ended December 31, 2018, 2017 and 2016, respectively.

Aggregate minimum lease payments under these agreements for future fiscal years are as follows (in thousands):



Year Ending December 31,	Amount
2019	$	23,552
2020		17,473
2021		9,812
2022		7,325
2023		3,594
Thereafter		28,542
Total	$	90,298

Commodities

As of December 31, 2018, the company had contracted future purchases of grain, corn oil, natural gas, ethanol, distillers grains and cattle, valued at approximately $289.3 million.

Legal

In November 2013, the company acquired two ethanol plants located in Fairmont, Minnesota and Wood River, Nebraska. There was ongoing litigation related to the consideration for this acquisition. On August 19, 2016, the Delaware Superior Court granted Green Plains’ motion for summary judgment in part and held that the seller’s attempt to disclaim liability for certain shortfall amounts through the use of a disclaimer provision was ineffective. On October 30, 2018, the ongoing litigation was settled and an adjustment to reduce the cost of inventory purchased in the acquisition was recorded in the fourth quarter as a reduction of costs of goods sold.

In addition to the above-described proceeding, the company is currently involved in litigation that has arisen in the ordinary course of business, but does not believe any pending litigation will have a material adverse effect on its financial position, results of operations or cash flows.