Commitments and Contingencies

12 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

16. COMMITMENTS AND CONTINGENCIES:

Lease Commitments

We lease certain land, buildings, machinery, equipment, and vehicles related to our dealerships under non-cancelable third-party operating leases. Certain of our leases include options for renewal periods and provisions for escalation. Rental expenses, including month-to-month rentals, were approximately $5.8 million, $6.0 million, and $7.1 million for the fiscal years ended September 30, 2014, 2015, and 2016, respectively.

Future minimum lease payments under non-cancelable operating leases as of September 30, 2016, were as follows:

	(Amounts in thousands)
2017		5,810
2018		5,306
2019		5,071
2020		5,131
2021		4,477
Thereafter		23,548
Total	$	49,343

Other Commitments and Contingencies

We are party to various legal actions arising in the ordinary course of business. We believe that these matters should not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.

In fiscal 2014 we recognized a recovery of approximately $555,000, net of taxes and other expenses, respectively, from the Deepwater Horizon Settlement Program for damages suffered as a result of the Deepwater Horizon Oil Spill. The recovery was recorded as a reduction in selling, general, and administrative expenses on our consolidated statements of operations. While additional claims are outstanding, we cannot be certain of the amount of any further recovery.

During the fiscal years ended September 30, 2014, 2015, and 2016, we incurred costs associated with store closings and lease terminations of approximately $217,000, $581,000, and $0, respectively. These costs primarily related to the future minimum operating lease payments of the closed locations. The store closings were a key component in our effort to better match our fixed costs with the decline in retail business caused by the soft economic conditions. The store closing costs have been included in selling, general, and administrative expenses in the consolidated statements of operations during the fiscal years ended September 30, 2014, 2015, and 2016.

In connection with certain of our workers’ compensation insurance policies, we maintain standby letters of credit for our insurance carriers in the amount of $1.0 million relating primarily to retained risk on our workers compensation claims.

We are subject to federal and state environmental regulations, including rules relating to air and water pollution and the storage and disposal of gasoline, oil, other chemicals and waste. We believe that we are in compliance with such regulations.