(6) Commitments and Contingencies

Leases

The Company has entered into various noncancelable operating lease agreements and capital lease agreements for its offices and equipment with lease periods expiring between fiscal 2018 and 2023. Certain of these arrangements have escalating rent payment provisions and optional renewal clauses. The Company is also committed to pay a portion of the actual operating expenses under certain of these operating lease agreements. As of January 31, 2017 and July 31, 2017, future minimum lease payments under noncancelable operating leases were as follows (in thousands):

As of January 31, 2017:
2018	$	7,121
2019		7,019
2020		7,127
2021		7,021
2022		7,068
Thereafter		3,984
Committed gross lease payments		39,340
Less proceeds from sublease rental		(4,244	)
Net operating lease obligation	$	35,096

As of July 31, 2017:
Remaining Fiscal 2018	$	3,678
2019		7,068
2020		7,135
2021		7,021
2022		7,068
Thereafter		3,984
Committed gross lease payments		35,954
Less proceeds from sublease rental		(3,655	)
Net operating lease obligation	$	32,299

The Company recognizes rent expense under its operating leases on a straight-line basis. Rent expense totaled $2.3 million and $3.1 million for the six months ended July 31, 2016 and 2017, respectively and was $1.1 million and $1.6 million for the three months ended July 31, 2016 and 2017, respectively.

As of January 31, 2017 and July 31, 2017, future minimum lease payments under noncancelable capital leases were as follows (in thousands):

As of January 31, 2017:
2018	$	216
2019		96
2020		77
Total		389
Interest		(20	)
Total	$	369

As of July 31, 2017:
Remaining Fiscal 2018	$	67
2019		96
2020		77
Total		240
Interest		(12	)
Total	$	228

Contingencies

The Company may, from time to time, become a party to various legal proceedings arising in the ordinary course of business. The Company investigates these claims as they arise. The Company does not believe, based on current knowledge, that any of the current claims will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Indemnification

Some of the Company’s contracts require the Company to indemnify its customers, distributors, or other business partners against certain risks, including in some cases against any third-party claims asserting infringement of certain intellectual property rights. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by the customer or business partner under the agreement. However, certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In addition, the Company has agreed to indemnify its directors, officers, and certain key employees against any liabilities that they may incur while serving in good faith in their respective capacities. To date, there have been no claims under any indemnification provisions.

Purchase Commitments

During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company provides rolling forecasts to its contract manufacturer of the monthly purchase requirements, a certain amount of which are purchase commitments that the contract manufacturer relies upon to procure components used to build finished products. The Company records a charge to cost of product revenue for firm, non-cancelable and unconditional purchase commitments with its contract manufacturer for non-standard components when and if quantities exceed the Company’s future demand forecasts. As of January 31, 2017, the Company had approximately $13.5 million of purchase commitments with its contract manufacturer. As of July 31, 2017 the Company had approximately $24.4 million of purchase commitments with its contract manufacturer.