KEQU » Topics » Note 7-Commitments and Contingencies

These excerpts taken from the KEQU 10-K filed Jul 18, 2008.

Note 7—Commitments and Contingencies

The Company entered into a 10-year operating lease for a new distribution center in fiscal year 2003. During fiscal years 2007 and 2006, the Company entered into several leases related to a new Enterprise Resource Planning System (ERP) that were classified as capital leases. The Company also leases some of its machinery and equipment under non-cancelable operating leases. Most of these leases provide the Company with renewal and purchase options, and most leases of machinery and equipment have certain early cancellation rights. Rent expense for these operating leases was $1,923,000, $1,892,000, and $1,637,000 in fiscal years 2008, 2007, and 2006, respectively. Future minimum payments under the above non-cancelable lease arrangements for the years ended April 30 are as follows:

 

$ in thousands

   Operating    Capital  

2009

   $ 1,567    $ 354  

2010

     1,304      162  

2011

     1,062      5  

2012

     947      —    

2013

     535      —    

Thereafter

     245      —    
               

Total minimum lease payments

     5,660      521  
               

Less: amount representing interest

     —        (45 )
               

Capital lease obligation

   $ —      $ 476  
               

The Company is involved in certain claims and legal proceedings in the normal course of business which management believes will not have a material adverse effect on the Company’s consolidated financial condition or results of operations.

 

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Table of Contents

Note 7—Commitments and Contingencies

FACE="Times New Roman" SIZE="2">The Company entered into a 10-year operating lease for a new distribution center in fiscal year 2003. During fiscal years 2007 and 2006, the Company entered into several leases related to a new Enterprise Resource
Planning System (ERP) that were classified as capital leases. The Company also leases some of its machinery and equipment under non-cancelable operating leases. Most of these leases provide the Company with renewal and purchase options, and most
leases of machinery and equipment have certain early cancellation rights. Rent expense for these operating leases was $1,923,000, $1,892,000, and $1,637,000 in fiscal years 2008, 2007, and 2006, respectively. Future minimum payments under the above
non-cancelable lease arrangements for the years ended April 30 are as follows:

 









































































































































$ in thousands

  Operating  Capital 

2009

  $1,567  $354 

2010

   1,304   162 

2011

   1,062   5 

2012

   947   —   

2013

   535   —   

Thereafter

   245   —   
         

Total minimum lease payments

   5,660   521 
         

Less: amount representing interest

   —     (45)
         

Capital lease obligation

  $—    $476 
         

The Company is involved in certain claims and legal proceedings in the normal course of business which management
believes will not have a material adverse effect on the Company’s consolidated financial condition or results of operations.

 


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Table of Contents


This excerpt taken from the KEQU 10-K filed Jul 18, 2007.

Note 7—Commitments and Contingencies

During fiscal years 2007, 2006 and 2005, the Company entered into several leases related to the implementation of a new ERP System that were classified as capital leases. The Company entered into a 10-year operating lease for a new distribution center in fiscal year 2003. The Company also leases some of its machinery and equipment under non-cancelable operating leases. Most of these leases provide the Company with renewal and purchase options, and most leases of machinery and equipment have certain early cancellation rights. Rent expense for these operating leases was $1,892,000, $1,637,000, and $1,302,000 in fiscal years 2007, 2006, and 2005, respectively. Future minimum payments under the above non-cancelable lease arrangements for the years ended April 30 are as follows:

 

$ in thousands

   Operating    Capital  

2008

   $ 1,441    $ 431  

2009

     1,309      367  

2010

     1,079      181  

2011

     839      10  

2012

     735      —    

Thereafter

     352      —    
               

Total minimum lease payments

     5,755      989  
               

Less: amount representing interest

     —        (153 )
               

Capital lease obligation

   $ —      $ 836  
               

The Company is involved in certain claims and legal proceedings in the normal course of business which management believes will not have a material adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the KEQU 10-K filed Jul 13, 2006.

Note 7—Commitments and Contingencies

During fiscal years 2006 and 2005, the Company entered into several leases related to the implementation of a new ERP System that were classified as capital leases. The Company entered into a 10-year operating lease for a new distribution center in fiscal year 2003. The Company also leases some of its machinery and equipment under non-cancelable operating leases. Most of these leases provide the Company with renewal and purchase options, and most leases of machinery and equipment have certain early cancellation rights. Rent expense for these operating leases was $1,637,000, $1,302,000, and $1,219,000 in fiscal years 2006, 2005, and 2004, respectively. Future minimum payments under the above non-cancelable lease arrangements for the years ended April 30 are as follows:

 

$ in thousands

   Operating    Capital  

2007

   $ 1,552    $ 329  

2008

     1,343      329  

2009

     1,215      252  

2010

     1,031      67  

2011

     827      —    

Thereafter

     1,215      —    
               

Total minimum lease payments

   $ 7,183      977  
               

Less: amount representing interest

     —        (134 )
               

Capital lease obligation

     —      $ 843  
               

The Company is involved in certain claims and legal proceedings in the normal course of business which management believes will not have a material adverse effect on the Company’s financial condition or results of operations.

This excerpt taken from the KEQU 10-K filed Jul 8, 2005.

NOTE 8—COMMITMENTS AND CONTINGENCIES

 

During fiscal year 2005, the Company entered into several leases related to the implementation of a new ERP System that were classified as capital leases. The Company entered into a 10-year operating lease for a new distribution center in fiscal year 2003. The Company also leases some of its machinery and equipment under non-cancelable operating leases. Most of these leases provide the Company with renewal and purchase options, and most leases of machinery and equipment have certain early cancellation rights. Rent expense for these operating leases was $1,302,000, $1,219,000, and $738,000 in fiscal years 2005, 2004, and 2003, respectively. Future minimum payments under the non-cancelable lease arrangements for the years ended April 30 are as follows:

 

$ in thousands


   Operating

   Capital

 

2006

   $ 1,175    $ 136  

2007

     1,085      136  

2008

     854      136  

2009

     699      74  

2010

     588      —    

Thereafter

     812      —    
    

  


Total minimum lease payments

     5,213      482  
    

  


Less: Amount representing interest

     —        (64 )

Capital lease obligation

   $ —      $ 418  
    

  


 

The Company is involved in certain claims and legal proceedings in the normal course of business which management believes will not have a material adverse effect on the financial condition or results of operations of the Company.

 

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