18. Commitments and Contingencies Commitments The Companys operations are conducted in leased facilities. The Company finances the purchase of certain IT equipment and perpetual software licenses under capital lease arrangements. Following is a summary of non-cancelable operating and capital lease commitments: April 30, 2017 (In thousands) Operating leases Capital leases 2018 $ 3,492 $ 304 2019 3,046 168 2020 2,888  2021 2,042  2022 1,648  Thereafter 2,631  $ 15,747 472 Less: amounts representing interest (23) Present value of capital lease obligations 449 Less: Current portion (288) Long-term portion of capital lease obligations $ 161 Rental expense under operating leases was approximately $4,612,000, $4,820,000 and $4,350,000 for the years ended April 30, 2017, 2016 and 2015, respectively. Not included in the table above are future rental payments associated with a lease amendment executed by the Company on June 13, 2017 to amend and extend its existing lease for one of its administrative properties. The amendment extends the term of the lease until June 30, 2022 and provides a tenant improvement allowance of up to $420,332. Beginning July 1, 2017, base monthly rent under the Second Amendment will be $65,200, which amount shall increase by 2.5%, compounded annually, commencing July 1, 2018. In addition, the Company has two 5-year options to extend the term of lease at the end of the then-current term. Contingencies The Company is subject to legal proceedings and claims which arise out of the ordinary course of its business. Although adverse decisions or settlements may occur, the Company, in consultation with legal counsel, believes that the final disposition of such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. At April 30, 2017 and 2016, the Company had outstanding letters of credit totaling $2,070,000 and $1,080,000, respectively. Contract Cost Audits Payments to the Company on government cost reimbursable cont