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Commitments and Contingencies
 12 Months Ended
Jun. 30, 2011
Commitments and Contingencies  
Commitments and Contingencies
(13)

Commitments and Contingencies

Leases

The Company leases office and warehouse space under non-cancelable operating leases that expire through September 2017. Lease expense and future minimum lease payments under operating leases are as follows:

 

00000000 00000000 00000000
     Fiscal Year Ended June 30,  
     2011      2010      2009  
     (in thousands)  

Lease expense

    $ 4,989       $ 4,430       $ 4,400   

 

00000000
     Payments  
     (in thousands)  

Fiscal Year Ended June 30,

   

2012

    $ 4,816   

2013

      4,043   

2014

      3,268   

2015

      2,459   

2016

      2,278   

Thereafter

      2,525   
  

 

 

  

Total future minimum lease payments

    $ 19,389   
  

 

 

  

On April 27, 2007, the Company entered into an agreement to lease approximately 600,000 square feet for distribution, warehousing and storage purposes in a building located in Southaven, Mississippi. The lease also provides for a right of first refusal on an additional 147,000 square feet of expansion space. The term of the lease is 120 months with 2 consecutive 5-year extension options.

Commitments and Contingencies

A majority of the Company's net revenues in 2011, 2010 and 2009 were received from the sale of products purchased from the Company's ten largest vendors. The Company has entered into written distribution agreements with substantially all of its major vendors. While the Company's agreements with most of its vendors contain standard provisions for periodic renewals, these agreements generally permit termination by either party without cause upon 30 to 120 days notice.

The Company or its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company's financial condition or results of operations.

In fiscal 2010, the Company began devoting resources to the implementation of a global ERP system. The Company has spent approximately $18.5 million on implementation of the new ERP system as of June 30, 2011. The expected cash flow impact of this project will be in the range of $8 to $15 million in fiscal 2012 and $4 to $5 million in fiscal 2013. The Company expects total expense for the project to be within $30.5 to $38.5 million, which includes cost of internal personnel and outside consultants. These costs will be financed using cash flow from operations and the revolving credit facility.