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Contingent Liabilites and Commitments | 12 Months Ended
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Aug. 31, 2019
Commitments and Contingencies Disclosure [Abstract] |
Contingent Liabilities and Commitments | Contingent Liabilities and Commitments Repurchase Commitments Generally, manufacturers in our industries enter into repurchase agreements with lending institutions which have provided wholesale floorplan financing to dealers. Most dealers are financed on a "floorplan" basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the units purchased. Our repurchase agreements generally provide that, in the event of default by the dealer on the agreement to pay the lending institution, we will repurchase the financed merchandise. The terms of these agreements, which generally can last up to 24 months, provide that our liability will be the lesser of remaining principal owed by the dealer to the lending institution, or dealer invoice less periodic reductions based on the time since the date of the original invoice. Our liability cannot exceed 100% of the dealer invoice. In certain instances, we also repurchase inventory from our dealers due to state law or regulatory requirements that govern voluntary or involuntary relationship terminations. Although laws vary from state to state, some states have laws in place that require manufacturers of RVs or boats to repurchase current inventory if a dealership exits the business. Our total contingent liability on all repurchase agreements was approximately $874.9 million and $879.0 million at August 31, 2019 and August 25, 2018, respectively. Repurchased sales are not recorded as a revenue transaction, but the net difference between the original repurchase price and the resale price are recorded against the loss reserve, which is a deduction from gross revenue. Our loss reserve for repurchase commitments contains uncertainties because the calculation requires management to make assumptions and apply judgment regarding a number of factors. Our risk of loss related to these repurchase commitments is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous dealers and lenders. The aggregate contingent liability related to our repurchase agreements represents all financed dealer inventory at the period reporting date subject to a repurchase agreement, net of the greater of periodic reductions per the agreement or dealer principal payments. Based on these repurchase agreements and our historical loss experience, we establish an associated loss reserve which is included in accrued expenses-other on the consolidated balance sheets. Our accrued losses on repurchases were $0.9 million and $0.9 million as of August 31, 2019 and August 25, 2018, respectively. Repurchase risk is affected by the credit worthiness of our dealer network and we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to establish the loss reserve for repurchase commitments. A summary of the activity for the fiscal years stated for repurchased units is as follows:
($ in thousands) | 2019 |  | 2018 |  | 2017
Inventory repurchased: |  |  |  |  |
Units | 125 |  |  | 56 |  |  | 14 |
Dollars | $ | 5,535 |  |  | $ | 1,716 |  |  | $ | 408 |
Inventory resold: |  |  |  |  |
Units | 109 |  |  | 56 |  |  | 15 |
Cash collected | $ | 4,634 |  |  | $ | 1,585 |  |  | $ | 393 |
Loss recognized | $ | 556 |  |  | $ | 132 |  |  | $ | 44 |
Units in ending inventory | 16 |  |  | — |  |  | — |
Litigation We are involved in various legal proceedings which are ordinary and routine litigation incidental to our business, some of which are covered in whole or in part by insurance. While we believe the ultimate disposition of litigation will not have a material adverse effect on our financial position, results of operations or liquidity, there exists the possibility that such litigation may have an impact on our results for a particular reporting period in which litigation effects become probable and reasonably estimable. Though we do not believe there is a reasonable likelihood that there will be a material change related to these matters, litigation is subject to inherent uncertainties and management’s view of these matters may change in the future. Lease Commitments Donald Clark, one of our executive officers, has a 20% ownership interest in Three Oaks, LLC, an entity which owns the land and buildings that Grand Design leases in order to operate its business. Upon joining our company, Mr. Clark agreed that as long as he is an employee of Grand Design, he has relinquished his voting rights in Three Oaks, LLC while retaining all other economic rights in Three Oaks, LLC. We have operating leases for certain land, buildings, and equipment. Lease expense was $6.2 million, $4.4 million, and $2.9 million for Fiscal 2019, 2018, and 2017, respectively. Our future lease commitments for future fiscal years included the following related party and non-related party leases:
| Operating Leases
(In thousands) | Related Party Amount |  | Non-Related Party Amount |  | Total
Fiscal 2020 | $ | 2,864 |  |  | $ | 1,236 |  |  | $ | 4,100 |
Fiscal 2021 | 2,863 |  |  | 1,068 |  |  | 3,931 |
Fiscal 2022 | 2,863 |  |  | 759 |  |  | 3,622 |
Fiscal 2023 | 3,597 |  |  | 530 |  |  | 4,127 |
Fiscal 2024 | 3,963 |  |  | 361 |  |  | 4,324 |
Thereafter | 25,064 |  |  | 1,359 |  |  | 26,423 |
Total future lease commitments | $ | 41,214 |  |  | $ | 5,313 |  |  | $ | 46,527 |

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