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Commitments and Contingencies
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 29, 2012
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| Commitments and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies |
11. Commitments and Contingencies Commitments Letters of credit – The Company had $15.2 million of outstanding letters of credit related to normal business transactions at September 29, 2012. Purchase commitments – Production and purchase agreements (primarily for grass seed and grains) entered into in the ordinary course of business obligate the Company to make future purchases based on estimated yields. The terms of these contracts vary and have fixed prices or quantities. At September 29, 2012, estimated annual purchase commitments were $82.2 million for fiscal 2013, $36.2 million for fiscal 2014, $23.3 million for fiscal 2015, $13.6 million for fiscal 2016, $9.2 million for fiscal 2017 and $4.5 million thereafter. Leases – The Company has operating lease agreements principally for office and warehouse facilities and equipment. Such leases have remaining terms of 1 to 9 years. Rental expense was $23.6 million for fiscal 2012, $24.4 million for fiscal 2011 and $26.9 million for fiscal 2010. Certain facility leases have renewal options and include escalation clauses. Minimum lease payments include scheduled rent increases pursuant to these escalation provisions.
Aggregate minimum annual payments on non-cancelable operating leases at September 29, 2012 are as follows:
Contingencies The Company may from time to time become involved in certain legal proceedings in the ordinary course of business. Currently, the Company is not a party to any legal proceedings that management believes would have a material adverse effect on the Company’s financial position or results of operations. The Company has experienced, and may in the future experience, issues with products that may lead to product liability, recalls, withdrawals, replacements of products, or regulatory actions by governmental authorities. In 2012, The Company recorded approximately $4.9 million of costs related to these recalls. Currently, the Company has not experienced any product liability, recalls, withdrawals or replacements of products that management believes would have a material adverse effect on the Company’s financial position or results of operations. |
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