Commitments and Contingencies

Commitments

As of December 31, 2018, the Company had outstanding purchase orders totaling $11,097,000 to purchase inventory from various vendors. Certain of these purchase orders may be canceled by the Company, subject to cancellation penalties. These purchase commitments relate to expected sales in 2018.

The Company conducts certain of its operations in leased facilities. These lease agreements expire at various dates through 2025 and are accounted for as operating leases. Certain of these leases contain renewal options, retirement obligations, escalation clauses, rent holidays, and leasehold improvement incentives. Annual rental expense totaled $8,186,000 in 2018, $6,738,000 in 2017, and $6,090,000 in 2016.

Future minimum rental payments under these agreements are as follows (in thousands):



Year Ended December 31,	Amount
2019	$	7,086
2020	5,227
2021	4,109
2022	2,918
2023	2,209
Thereafter	1,198
	$	22,747

The Company owns a building adjacent to its corporate headquarters that is partially occupied with a tenant who has a lease agreements that will expire in 2022. The Company had an additional tenant whose lease expired in November 2018. Annual rental income totaled $1,116,000 in 2018, $1,474,000 in 2017, and $1,911,000 in 2016. Rental income and related expenses are included in “Other income (expense)” on the Consolidated Statements of Operations. Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands):



Year Ended December 31,	Amount
2019	307
2020	307
2021	307
2022	307
	$	1,228

Contingencies

Various claims and legal proceedings generally incidental to the normal course of business are pending or threatened on behalf of or against the Company. While we cannot predict the outcome of these matters, we believe that any liability arising from them will not have a material adverse effect on our financial position, liquidity, or results of operations.