16. Commitments and contingencies Bank guarantees As of March 29, 2019 and June 29, 2018, there were outstanding bank guarantees given by a bank on behalf of our subsidiary in Thailand for electricity usage and other normal business amounting to $1.6 million and $1.5 million, respectively. Operating lease commitments The Company leases a portion of its capital equipment, vehicles, and certain land and buildings for its facilities in Thailand, the Cayman Islands, China, the United States and the United Kingdom under operating lease arrangements that expire in various years through 2023. Rental expense under these operating leases amounted to $1.4 million and $1.3 million for the nine months ended March 29, 2019 and March 30, 2018, respectively. As of March 29, 2019, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 450 2020 1,739 2021 1,336 2022 1,208 2023 1,182 Thereafter 227 Total minimum operating lease payments $ 6,142 Capital lease commitments In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of several machines and equipment, with various expiration dates until September 2020. The equipment can be purchased at the determined prices upon expiration of such contracts. As of March 29, 2019, the future minimum lease payments due under non-cancelable capital leases during each fiscal year were as follows: (amount in thousands) 2019 (remaining three months) $ 110 2020 410 2021 105 Total minimum capital lease payments $ 625 Purchase obligations Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year. As of March 29, 2019, the Company had an outstanding commitment to third parties of $8.6 million. Indemnification of directors and officers Cayman Islands law does not limit the extent to which a companys memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Fabrinets amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them. In accordance with Fabrinets form of indemnification agreement for its directors and officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements.