Note 6. Commitments and Contingencies Lease commitments The Company leases its facilities and certain equipment under operating leases that expire at various dates through 2052. Some of the leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement incentives. Rent expense is recognized on a straight-line basis over the lease term. Rent expense was $4,950, $3,063 and $2,928 in financial years ended March 31, 2019, 2018 and 2017, respectively. The following is a schedule by years of minimum future rentals on non-cancelable operating leases as of March 31, 2019: 2020 $ 3,387 2021 1,861 2022 1,858 2023 1,830 2024 1,841 Thereafter 71,507 Total minimum future lease payments $ 82,284 Sale-leaseback transaction During the year ended March 31, 2018, the Company completed a sale-leaseback transaction and sold the ARC facility, but retained a leasehold interest as tenant of the property. The transaction resulted in net cash proceeds of $19,741 and a gain of $373 which has been deferred and recorded within accrued liabilities on the Consolidated Balance Sheet and will be amortized on a straight-line basis over the lease term as a reduction of the rental expense in the consolidated statements of comprehensive loss. Additionally, the lease required the Company to provide a rental deposit of 3,600 which amounted to $4,688 at March 31, 2019 and $5,043 at March 31, 2018 which is included within other non-current assets in the Consolidated Balance Sheet. The Company evaluated the transaction in accordance with ASC 840, Leases , considering the requirements for sale-leaseback treatment, including the transfer of all risks of ownership to the purchaser and whether the Company has any continuing involvement in the leased property. The Company also evaluated the property lease in accordance with ASC 840 and concluded that the lease of the property was an operating lease. Refer to Lease commitments above for the future minimum lease payments associated with all the Companys operating leases. In connection with this transaction, the Company has agreed to transfer tax allowances related to certain other property, plant and equipment to the purchaser. However, at March 31, 2019, the transfer of these allowances had not been completed and thus the effect of the transfer has not been reflected in the financial statements. The Company has entered into capital leases for the purchase of equipment that has a gross cost and net book value of $2,781 and $2,137, respectively as of March 31, 2019 and $3,130 and $2,810, respectively as of March 31, 2018. The following is a schedule of future annual repayments on capital leases as of March 31, 2019: 2020 $ 471 2021 369 2022 306 2023 190 2024  Thereafter  Total minimum future lease payments $ 1,336 Purchase obligations The Company has purchase obligations that are associated with agreements for purchases of goods or services. Management believes that cancellation of these contracts is unlikely and thus the Company expects to make future cash payments according to the contract terms. The following is a schedule by years of purchase obligations as of March 31, 2019: 2020 $ 14,635 2021 4,519 2022 10,538 2023 11,691 2024 19,431 Thereafter 18,360 Total minimum future purchase obligations $ 79,174 Hedging arrangements The Companys subsidiary in the United Kingdom (UK) has entered into three foreign currency forward contracts to sell $500 and purchase pounds sterling at a rate of 1:$1.3520 in each calendar month through June 2019, three contracts to sell $500 in each calendar month from July 2019 through September 2019 at 1:$1.3000 and three contracts to sell $500 in each calendar month from October 2019 through December 2019 at 1:$1.3180 as hedges of its U.S. dollar denominated revenues. The fair values of these contracts, and similar contracts in place at March 31, 2018, amounted to an asset of $118 at March 31, 2018 and liabilities of $70 and $64 at March 31, 2019 and March 31, 2018, respectively. The foreign currency forward contracts were entered into to mitigate the foreign exchange risk arising from the fluctuations in the value of U.S. dollar denominated transactions entered into by our UK subsidiary. These foreign currency forward contracts are designated as cash flow hedges and are carried on the Companys balance sheet at fair value with the effective portion of the contracts gains or losses included in accumulated other comprehensive loss and subsequently recognized in revenue/expense in the same period the hedged items are recognized. At inception and at each quarter end, hedges are tested prospectively and retrospectively for effectiveness. Changes in the fair value of foreign currency forward contracts due to changes in time value are excluded from the assessment of effectiveness and are recognized in revenue in the current period. The change in time value related to these contracts was not material for all reported periods. To qualify for hedge accounting, the hedge relationship must meet criteria relating both to the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instruments effectiveness in offsetting the exposure to changes in the hedged items cash flows will be measured. There were no gains or losses during the years ended March 31, 2019, March 31, 2018 or March 31, 2017 associated with ineffectiveness or forecasted transactions that failed to occur. To receive hedge accounting treatment, hedging relationships are formally documented at the inception of the hedge and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions.