22. Commitments and Contingencies

Operating Leases Commitments

The Company leases manufacturing and office facilities and certain equipment under non-cancelable operating leases with lease expiration dates through 2025. Rent expense under the operating leases, excluding costs recorded as a component of restructuring charges, was $5.3 million, $4.0 million and $4.5 million, respectively, for the fiscal years ended September 30, 2018, 2017 and 2016.

Future minimum lease commitments on non-cancelable operating leases and scheduled sublease payments as of September 30, 2018 are as follows (in thousands):


			Scheduled
	Gross		Sublease		Net
Year Ended September 30,	Payments		Payments		Payments
2019	$	3,842		9		3,833
2020		2,377		—		2,377
2021		1,545		—		1,545
2022		1,370		—		1,370
2023		1,251		—		1,251
Thereafter		1,847		—		1,847
	$	12,232	$	9	$	12,223

Letters of Credit

At September 30, 2018, the Company had $2.2 million of letters of credit outstanding related primarily to customer advances and other performance obligations. These arrangements guarantee the refund of advance payments received from the Company’s customers in the event that the product is not delivered or warranty obligations are not fulfilled in accordance with the contract terms. These obligations could be called by the beneficiaries at any time before the expiration date of the particular letter of credit if the Company fails to meet certain contractual requirements. None of these obligations were called during fiscal years ended September 30, 2018, and the Company currently does not anticipate any of these obligations to be called in the near future.

Purchase Commitments

The Company has non-cancelable contracts and purchase orders for inventory of $85.4 million at September 30, 2018.

Contingencies

The Company is subject to various legal proceedings, both asserted and unasserted, that arise in the ordinary course of business. The Company cannot predict the ultimate outcome of such legal proceedings or in certain instances provide reasonable ranges of potential losses. However, as of the date of this report, the Company believes that none of these claims will have a material adverse effect on its consolidated financial position or results of operations. In the event of unexpected subsequent developments and given the inherent unpredictability of these legal proceedings, there can be no assurance that the Company’s assessment of any claim will reflect the ultimate outcome, and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s consolidated financial position or results of operations in particular quarterly or annual periods.