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Commitments and Contingencies
12 Months Ended
Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8.     Commitments and Contingencies

 

Commitments and guarantees

 

We lease facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2021. We are committed to make minimum cash payments under these agreements as of October 31, 2015, as follows (in thousands):

 

 

 

 

 

 

2016

    

$

4,696

 

2017

 

 

4,655

 

2018

 

 

4,308

 

2019

 

 

3,823

 

2020

 

 

3,635

 

Thereafter

 

 

20,658

 

 

 

$

41,775

 

 

Total rent expense amounted to approximately $4.4 million, $3.8 million and $3.5 million for the years ended October 31, 2015, 2014, and 2013.  Rent to Limoneira, for our corporate office, amounted to approximately $0.3 million for fiscal years 2015, 2014, and 2013.  In fiscal 2014, we renewed our lease with Limoneira for our corporate facility through fiscal 2020 at an annual rental of $0.3 million per annum (subject to annual CPI increases, as defined). 

 

In July 2015, we entered into a Lease Agreement with Green Cove, LLC to lease an operating facility in Jacksonville Florida. The facility is approximately 200,000 square feet and is expected to be a value-added distribution center for all operating segments.  We took possession of the property in August 2015 and are in the process of making improvements to this facility.   The lease began in November 2015 and is scheduled to terminate in October 2031. 

 

In fiscal 2014, we renewed the lease of our distribution facility in Garland Texas through fiscal 2029 at an annual rental of $0.8 million per annum (subject to annual CPI increases, as defined).

 

In fiscal 2014, we had two lease renewals for our RFG facilities in California, one being the corporate office of RFG in Rancho Cordova, and the other being a fresh processing facility in Sacramento.  The RFG corporate office in Rancho Cordova has an operating lease through June 2018.  Total rent for fiscal 2015, 2014, and 2013 was approximately $0.4 million.  The processing facility in Sacramento has an operating lease through May 2021(subject to annual CPI increases, as defined).  Total rent for fiscal 2015, 2014, and 2013 was approximately $0.5 million.

 

We indemnify our directors and have the power to indemnify each of our officers, employees and other agents, to the maximum extent permitted by applicable law.  The maximum amount of potential future payments under such indemnifications is not determinable.  No amounts have been accrued in the accompanying financial statements related to these indemnifications.

 

Litigation

 

From time to time, we are also involved in litigation arising in the ordinary course of our business that we do not believe will have a material adverse impact on our financial statements.

 

In January 2015, various class action lawsuits, which have been consolidated into a single lawsuit during our second fiscal quarter, were initiated against the company related to the restatement of previously-issued financial statements. In the third quarter of fiscal 2015, the plaintiffs filed an amended complaint, to which we filed a motion to dismiss (MTD).  In the fourth quarter of fiscal 2015, the plaintiffs filed an opposition to this MTD, to which we subsequently filed a reply to said opposition. Ultimately, in our fourth fiscal quarter, our MTD was granted, but with leave to amend.  During our first quarter of fiscal 2016, the plaintiffs filed an amended complaint, to which we filed another MTD.  The next hearing before the judge is expected during the second quarter of fiscal 2016.  We intend to vigorously defend ourselves against this lawsuit and we do not expect that such legal claims and litigation will ultimately have a material adverse effect on our consolidated financial position or results of operations.