(11)Leases

The Company leases domestic office and manufacturing space, and various office accessories. The building lease for the Company’s present office and manufacturing space expires on December 31, 2017. The Company also leases selling office spaces and manufacturing space in France and Italy, which leases expire at various dates through October 31, 2020 and auto leases through 2019. Total lease expenses, including office and manufacturing spaces, autos and office accessories, were $458,000 and $322,000 for the years ended October 31, 2015 and 2014, respectively.

The renewal terms of the building lease for the Company’s domestic office and manufacturing facility include rental payments that escalate annually at stated amounts. The lessor also agreed to make certain leasehold improvements in the early portion of the renewal period. The Company uses deferred rental liability accounts to accrue the combined effect of the future payments in relation to the lessor-funded improvements and the normal rent expense for each year, calculated as the average of the five-year committed payments. At October 31, 2013, the Company recorded $210,000 of the estimated lessor-funded leasehold improvements, with additional improvements similarly funded totaling $33,000 completed in the year ended October 31, 2014. The balance of the remaining lessor-funded leasehold improvements will be recorded when completed. Future minimum lease payments under operating leases in effect as of October 31, 2015 are as follows:



(In thousands)	Amount
Year Ended October 31,
2016	$	489
2017		474
2018		147
2019		51
2020		33
Thereafter		6
	$	1,200