COMMITMENTS AND CONTINGENCIES

Purchase Obligations and Lease Commitments—The Company had various purchase obligations at February 2, 2018 over a period of approximately four years with vendors or contractors, subject to the Company’s operational needs. The Company also leases land, office buildings and equipment under various operating lease agreements. As of February 2, 2018, the purchase obligations and future minimum payments under the Company's operating leases (in thousands) are as follows:



	Payments Due For
	Operating		Purchase		Credit Facilities
Fiscal Years Ending	Leases		Obligations		and Other ⁽¹⁾		Total
2019	$	5,231	$	3,446	$	2,746	$	11,423
2020	4,727		1,397		500		6,624
2021	3,644		611		500		4,755
2022	5,349		—		—		5,349
2023	4,576		—		—		4,576
2024 and beyond	16,117		—		—		16,117
Total	$	39,644	$	5,454	$	3,746	$	48,844


⁽¹⁾	Reflects purchase obligations of annual maintenance services for hardware systems for internal use from a related party. See also “Note 10—Related Party Transactions.”

Rent expense under all leases totaled $4.7 million, $3.9 million, and $3.0 million during the fiscal years ended February 2, 2018, February 3, 2017, and January 29, 2016, respectively.

Legal Contingencies — From time to time, the Company is involved in claims and legal proceedings that arise in the ordinary course of business. The Company accrues a liability when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews the status of legal cases at least quarterly and adjusts its liabilities as necessary to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. Whether the outcome of any claim, suit, assessment, investigation or legal proceeding, individually or collectively, could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows will depend on a number of factors, including the nature, timing and amount of any associated expenses, amounts paid in settlement, damages or other remedies or consequences. To the extent new information is obtained and the Company’s views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in accrued liabilities would be recorded in the period in which such determination is made. As of February 2, 2018, the Company does not believe that there were any such matters that, individually or in the aggregate, could have a material adverse effect on its business, financial condition, results of operations or cash flows.

Client-based Taxation Contingencies—Various government entities (“taxing authorities”) require the Company to bill its clients for the taxes they owe based on the services they purchase from the Company. The application of the rules of each taxing authority concerning which services are subject to each tax and how those services should be taxed involves the application of judgment. Taxing authorities periodically perform audits to verify compliance and include all periods that remain open under applicable statutes, which generally range from three to four years. These audits could result in significant assessments of past taxes, fines and interest if the Company were found to be non-compliant. During the course of an audit, a taxing authority may question the Company's application of its rules in a manner that, if the Company were not successful in substantiating its position, could result in a significant financial impact to the Company. In the course of preparing its financial statements and disclosures, the Company considers whether information exists that would warrant disclosure or an accrual with respect to such a contingency.

Indemnifications — In the ordinary course of business, the Company enters into contractual arrangements under which it agrees to indemnify its clients from certain losses incurred by the client as to third-party claims relating to the services performed on behalf of the Company or for certain losses incurred by the client as to third-party claims arising from certain events as defined within the particular contract. Such indemnification obligations may not be subject to maximum loss clauses. Historically, payments related to these indemnifications have been immaterial.

Concentrations — The Company sells solutions to clients of all sizes primarily through its direct sales organization, supplemented by sales through channel partners. During the fiscal years ended February 2, 2018, February 3, 2017, and January 29, 2016, the Company did not have any single client that represented 10% or more of its revenue during the fiscal period.