3. Leases

We lease building space, office equipment and motor vehicles under operating leases. Lease terms generally cover periods from two to five years and may contain renewal options. The following is a summary, as of June 30, 2016, of the future minimum annual lease payments required under our operating leases having initial or remaining non-cancelable terms in excess of one year:


(in thousands)
Year	Minimum Rentals
2017	$	1,018
2018		721
2019		105
2020		1
2021 and beyond		-

Total minimum lease payments	$	1,845

Rental expenses for operating leases in the fiscal years ended June 30, 2016, 2015 and 2014 were $1,097,000, $1,007,000 and $1,018,000, respectively.