COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2017

9. COMMITMENTS AND CONTINGENCIES:

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 $5.7 million in fiscal 2017 and $5.5 million in fiscal 2016.

At September 2017 the minimum future lease commitments were as follows:


	Operating
Fiscal Year Ending	Leases
2018	$	5,444,675
2019		4,552,452
2020		3,618,693
2021		2,608,271
2022		2,074,661
Thereafter		3,733,399
Total minimum lease payments	$	22,032,151

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 2017 and September 2016 was $1.5 million and $1.3 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):


	2017		2016
Beginning balance	$	1.3	$	1.6
Charged to expense		6.5		5.7
Payments		6.3		6.0
Ending balance	$	1.5	$	1.3