10. Other Matters

The Company has vehicle and equipment operating leases that expire at various dates through fiscal 2017. Rental expense under these leases totaled $6.8 million, $7.7 million, and $7.7 million during fiscal 2012, 2011 and 2010, respectively. The minimum lease payments of obligations under non-cancelable operating leases at October 31, 2012 were as follows (in millions):


Fiscal Year	Amount
2013	$	3.6
2014		2.6
2015		2.3
2016		1.4
2017		0.1

	$	10.0

At October 31, 2012, the Company’s estimated contractual obligations for feed grains, feed ingredients, and packaging supplies totaled $318 million, with approximately $315.4 million due in less than one year and the remainder due in 1 to 3 years.

On February 16, 2012, two of our former employees sued us and seven of our current and former employees in the United States District Court for the Middle District of Georgia for damages allegedly caused to them by our alleged violations of the federal and State of Georgia’s Racketeer Influenced and Corrupt Organizations (“RICO”) Acts. The plaintiffs filed the lawsuit on behalf of all hourly-paid workers legally authorized to be employed in the United States who have been employed at our processing plant located in Moultrie, Georgia since 2008.

The plaintiffs allege in their complaint that the Company conspired to knowingly hire undocumented immigrants at the Moultrie plant to “save Sanderson millions of dollars in labor costs because illegal aliens will work for extremely low wages, will typically not complain about workplace conditions and injuries, and because of their vulnerable situation, will accede to managers’ demands to work harder than American citizens and legal aliens.”

The action is brought as a class action lawsuit on behalf of all persons legally authorized to be employed in the United States who have been employed at the Moultrie plant as hourly wage earners in the four years before the filing of the case, and the plaintiffs seek certification of that class. The plaintiffs are suing for money damages, injunctive relief and revocation of our license to conduct business in the State of Georgia.

On September 13, 2012, the Court entered an Order granting a motion to dismiss the Complaint, but provided the plaintiffs an opportunity to amend the Complaint on one of the alleged violations. Consequently, an Amended Complaint was filed by the plaintiffs on October 5, 2012. A motion to dismiss the Amended Complaint has been filed, and the plaintiffs have filed their response in opposition to that motion.

Based on our present knowledge, we consider the claims made in the amended lawsuit to be baseless.

The Company is involved in various claims and litigation incidental to its business. Although the outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that the final outcome should not have a material effect on the Company’s consolidated results of operation, or financial position.

The Company recognizes the costs of legal defense for the legal proceedings to which it is a party in the periods incurred. After a considerable analysis of each case, the Company determines the amount of reserves required, if any. As of October 31, 2012 the Company has not accrued any reserve for any of these matters. Future reserves may be required if losses are deemed reasonably estimable and probable due to changes in the Company’s assumptions, the effectiveness of legal strategies, or other factors beyond the Company’s control. Future results of operations may be materially affected by the creation of reserves or by accruals of losses to reflect any adverse determinations in these legal proceedings.