The Company leases its principal and other facilities under operating lease agreements. Net operating lease expenses for the years ended January 31, 2019, 2018 and 2017 were approximately $4.6 million, $5.3 million and $7.6 million, respectively. Future annual minimum payments under these operating agreements with initial lease terms in excess of one year are as follows:

	As of
	January 31, 2019
Fiscal Year	(in thousands)
2020	$	2,592
2021		1,040
2022		356
2023		143
2024		147
Thereafter		576
Total future annual minimum lease payments	$	4,854

Upon adoption of Accounting Standards Update No. 2015-05, Intangible - Goodwill and Other - Internal-Use Software (Subtopic 350-40), a noncancelable on premise internal-use software license was accounted for as the acquisition of an intangible asset rather than a software license under an operating lease. For the fiscal years ended January 31, 2019 and 2018, there was $4.7 million and $3.0 million of amortization expense recorded in the consolidated statements of operations related to these software licenses, respectively. The amortization expense of these software licenses was immaterial for the fiscal year ended January 31, 2017.

The Company’s components and products are procured and built by independent contract manufacturers based on sales forecasts. These forecasts include estimates of future demand, historical trends, analysis of sales and marketing activities, and adjustment of overall market conditions. The Company regularly issues purchase orders to independent contract manufacturers which are cancelable only upon the agreement between the Company and the third-party. As of January 31, 2019 and 2018, total manufacturing purchase commitments were approximately $28.2 million and $24.3 million, respectively.

The Company, from time to time, in the normal course of business, indemnifies certain vendors with whom it enters into contractual relationships. The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s future products. The Company also indemnifies certain customers against third-party claims related to certain intellectual property matters. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim. The Company has not made payments under these obligations and no liabilities have been recorded for these obligations on the consolidated balance sheets as of January 31, 2019 and 2018, respectively.