10. Guarantees, Commitments and Contingencies

Litigation

At September 29, 2018, the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse impact on the Company’s financial statements.

Environmental

The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental proceedings and therefore management believes that the resolution of environmental matters will not have a material adverse effect on the Company’s financial statements.

Our environmental liability using a discount rate of 11.5%, included in current accrued expenses and other long-term liabilities on the Consolidated Balance Sheets, was $0.4 million and $0.5 million at September 29, 2018 and September 30, 2017, respectively. The estimated aggregate undiscounted amount that will be incurred over the next 9 years is $0.9 million. The estimated payments for each of the next five years are $0.1 million per year and the aggregate amount thereafter is $0.4 million. Future expenditures may exceed the amounts accrued and estimated.

Lease Commitments

The Company leases certain buildings, machinery and equipment under operating leases expiring at various dates through 2027. Total rent expense was $2.0 million, $1.3 million and $1.2 million for the fiscal years ended 2018, 2017 and 2016, respectively.

Operating Leases

The following table sets forth future minimum lease payments under non-cancelable operating leases with original terms exceeding one year at September 29, 2018:



(in thousands of dollars)
Years Ended	Amount
2019	$	1,305
2020	1,428
2021	1,409
2022	1,424
2023	1,442
Thereafter	4,624
Total operating lease commitments	$	11,632

Capital Leases

The Company leases from third party vendors various office and plant equipment which qualify for capital lease treatment under the provisions of ASC 840. On the Consolidated Balance Sheets, amounts due under capital lease obligations are included in other liabilities, current and long-term, with the related assets recorded in property, plant and equipment, net. Depreciation of assets recorded under capital lease obligations is included in cost of goods sold or selling, general and administrative expenses, depending upon use of leased property, on the Consolidated Statements of Operations. These leases have remaining lease terms ranging from 1.0 to 4.3 years.

Leased property under capital leases at the dates indicated is presented in the following table:



(in thousands of dollars)	September 29, 2018			September 30, 2017
Leased property under capital leases	$	1,071		$	1,071
Accumulated amortization	(870		)	(715		)
Leased property under capital leases, net	$	201		$	356

The following table summarizes the Company’s future minimum lease payments under capital leases at September 29, 2018:



(in thousands of dollars)
Years Ended	Amount
2019	$	175
2020	18
2021	18
2022	18
2023	6
Thereafter	—
Total minimum lease payments	235
Amount of lease payments representing interest	(15		)
Present value of future minimum capital lease payments	$	220
Current obligations under capital leases	$	169
Long-term obligations under capital leases	51

Purchase Commitments

In the ordinary course of business, the Company enters into short-term contractual purchase orders for inventory and other assets. The amount of these commitments for the next five fiscal years is expected to be as follows:



(in thousands of dollars)
Years Ended	Amount
2019	$	84,850
2020	3,956
Total purchase commitments	$	88,806