Commitments and Contingencies

Operating Leases

We have several non-cancelable operating leases, primarily for our corporate headquarters, certain of our leased manufacturing facilities, warehouses, office space and equipment. Total rental expense related to our operating leases was $7,715, $6,675 and $6,025 for fiscal 2017, 2016 and 2015, respectively.

As of July 31, 2017, future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) for the periods set forth below were as follows:



Fiscal year ending:	Total
2018	$	6,522
2019	5,278
2020	3,779
2021	2,719
2022	1,231
Thereafter	2,454
Total	$	21,983

Contingent Consideration and Assumed Contingent Liability

We have $1,138 recorded as of July 31, 2017 related to the Jet Prep acquisition, which is for the estimated fair value of an assumed contingent obligation payable to the Israeli Government, as further described in Note 8, "Intangibles and Goodwill," which will be payable based on future sales. We are currently working with the Israeli Government to forgive any future amounts payable due to our decision to exit the Jet Prep business and we expect a decision from the Israeli government in the first half of fiscal 2018. Additionally, in connection with the PuriCore plc acquisition in fiscal 2014, we assumed a contingent guaranteed obligation to reimburse an endoscope service company for endoscope repair costs it incurs when servicing its customers’ endoscopes that are damaged by one of PuriCore’s discontinued endoscope reprocessing machine models. During fiscal 2017, we ended the agreement with the endoscope service company and decreased the remaining liability of $283 through our consolidated statements of income.

Legal Proceedings

In the normal course of business, we are subject to pending and threatened legal actions. It is our policy to accrue for amounts related to these legal matters if it is probable that a liability has been incurred and an amount of anticipated exposure can be reasonably estimated. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows.