COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS:

12 Months Ended

Sep. 30, 2015

COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS:

COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS:

10. COMMITMENTS, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS:

Lease Obligations

The Company leases various office and warehouse facilities and equipment under noncancellable operating leases. Rents charged to expense under these operating leases totaled approximately $5.3 million in fiscal 2015 and $5.0 million in fiscal 2014.

At September 2015 the minimum future lease commitments were as follows:

Fiscal Year Ending	Operating Leases
2016	$	4,790,387
2017		3,607,560
2018		3,184,076
2019		2,390,650
2020		1,687,248
Thereafter		1,399,456
Total minimum lease payments	$	17,059,377

Our Retail Segment leases warehouse space from TIP Properties, LLC, which is owned by Mr. Eric Hinkefent, President of Chamberlin's Natural Foods, Inc. and Health Food Associates, and another Company employee. Annual rental payments related to this lease were approximately $0.1 million in both fiscal 2015 and fiscal 2014.

Liability Insurance

The Company carries property, general liability, vehicle liability, directors and officers' liability and workers' compensation insurance. Additionally, the Company carries an umbrella liability policy to provide excess coverage over the underlying limits of the aforementioned primary policies.

The Company's insurance programs for workers' compensation, general liability, and employee related health care benefits are provided through high deductible or self-insured programs. Claims in excess of self-insurance levels are fully insured subject to policy limits. Accruals are based on historical claims experience, actual claims filed, and estimates of claims incurred but not reported.

The Company's liabilities for unpaid and incurred, but not reported claims, for workers' compensation, general liability, and health insurance at September 2015 and September 2014 was $1.6 million and $1.4 million, respectively. These amounts are included in accrued expenses in the accompanying Consolidated Balance Sheets. While the ultimate amount of claims incurred is dependent on future developments, in the Company's opinion, recorded reserves are adequate to cover the future payment of claims previously incurred. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims.

Adjustments, if any, to claims estimates previously recorded, resulting from actual claim payments, are reflected in operations in the periods in which such adjustments are known.

A summary of the activity in the Company's self-insured liabilities reserve is set forth below (in millions):

	2015		2014
Beginning balance	$	1.4	$	1.3
Charged to expense		4.8		6.3
Payments		4.6		6.2
Ending balance	$	1.6	$	1.4