8. COMMITMENTS

Contractual Obligations - Next-Generation Gateways and Other Ground Facilities

As of December 31, 2018, the Company had purchase commitments with certain vendors related to the procurement, deployment and maintenance of the second-generation network, including gateway acquisitions.

The Company has a purchase commitment with MIL-SAT LLC for the procurement and production of new antennas for substantially all of the Company's gateways. As of December 31, 2018, the Company's remaining purchase obligations under this commitment are approximately $16.0 million; the timing of payments is driven by work performed under the contract over an approximate three-year period.

In December 2018, the Company entered into a binding asset purchase agreement with Tesam Argentina, S.A., the owners of the Company's IGO in Argentina, to establish a ground station in Argentina. The Company will purchase certain fixed assets and related government authorizations in connection with the operation of this gateway. The Company is obligated to make a payment under this purchase agreement of approximately $1.2 million in 2019, which is net of recoverable taxes of $0.2 million, and was recorded in accrued expenses on its consolidated balance sheet as of December 31, 2018.

Other Commitments

The Company has inventory purchase commitments with its third party product manufacturers in the normal course of business. These commitments are generally non-cancelable and are based on internal twelve-month sales forecasts. The Company estimates that its open inventory purchase commitments as of December 31, 2018 were approximately $15.9 million. As of December 31, 2018, approximately $0.6 million related to these commitments was recorded in prepaid expenses and other current assets on the Company's consolidated balance sheet.

Future Minimum Lease Obligations

The Company has non-cancelable operating leases for facilities and equipment throughout the United States and around the world, including Louisiana, California, Florida, Nevada, Texas, Canada, Ireland, France, Brazil, Panama, Singapore and Botswana. The leases expire on various dates through 2031. The following table presents the future minimum lease payments for leases having an initial or remaining non-cancelable lease term in excess of one year (in thousands) as of December 31, 2018, excluding possible lease payment reimbursement from the State of Louisiana pursuant to the Cooperative Endeavor Agreement the Company entered into with the Louisiana Department of Economic Development (See Note 10: Accrued Expenses and Other Non-Current Liabilities):



2019	$	766
2020	694
2021	495
2022	404
2023	408
Thereafter	2,730
Total minimum lease payments	$	5,497

As of December 31, 2018, the Company had certain leases which had a remaining lease term of less than one year. These leases included the Company's current headquarters in Covington, Louisiana and one of its gateways in Singapore. The Company moved into a new headquarter location in February 2019 and is leasing this location from Thermo Covington, LLC; as the former lease had a remaining term of less than one year and the new lease was not signed as of December 31, 2018, amounts for either location are not reflected in the table above. The Company's new headquarters lease will have a total lease term of ten years with annual base lease payments of approximately $1.4 million, which will increase at a rate of 2.5% per year. The Company renewed its lease agreement with its gateway in Singapore in February 2019; as this lease agreement was month to month as of December 31, 2018, amounts for this location were not included in the table above. The Singapore gateway lease will have a total lease term of two years with annual base lease payments of approximately $0.5 million per year.

Total rent expense for 2018, 2017 and 2016 was approximately $1.4 million, $1.4 million and $1.3 million, respectively.