Note 16. Commitments and Contingencies

We generally operate our physical bookstores pursuant to multi-year school management contracts under which a school designates us to operate the official school physical bookstore on campus and we provide the school with regular payments that represent a percentage of store sales and, in some cases, include a minimum fixed guaranteed payment. We account for these service agreements for our physical bookstores under lease accounting. We provide for minimum contract expense over the contract terms on a straight-line basis. The excess of such minimum contract expense over actual contract payments (net of school allowances) is reflected in other long-term liabilities and accrued liabilities in the consolidated balance sheets. The expense related to our college and university contracts for physical bookstores, including rent expense, and other facility costs in the consolidated statements of operations are as follows:



	Fiscal 2019		Fiscal 2018		Fiscal 2017
Minimum contract expense	$	169,131	$	170,351	$	165,980
Percentage contract expense	73,368		80,630		87,843
Total expense	$	242,499	$	250,981	$	253,823

Our physical bookstore management contracts with colleges and universities are typically five years with renewal options and are typically cancelable by either party without penalty with 90 to120 days' notice. The annual projections below are based on current minimum guarantee amounts. In approximately 72% of our physical bookstore management contracts with colleges and universities that include minimum guarantees, the minimum guaranteed amounts adjust annually to equal less than the prior year's commission earned.

As of April 27, 2019, future minimum annual obligations required under our physical bookstore management contracts with colleges and universities and other facility costs are as follows:



Fiscal Year
2020	$	138,523
2021	133,741
2022	120,327
2023	113,518
2024	99,693
After 2024	161,090
Total	$	766,892

Purchase obligations, which includes information technology contracts and inventory purchase commitments, as of April 27, 2019 are as follows:



Less Than 1 Year	$	4,262
1-3 Years	1,819
3-5 Years	32
Total	$	6,113