11.

Commitments and Contingencies

Operating Leases

The Company leases certain warehouses, sales offices, machinery and equipment and vehicles under long-term operating lease agreements

. The leases expire at various dates through

2025.

In some cases, the leases include options to extend. Rent and lease expense was

$9.7

million,

$9.1

million and

$8.7

million for the years ended

December 31, 2017,

2016

and

2015,

respectively.

The future

annual minimum lease payments as of

December 31, 2017

are as follows:

(in thousands)		201 8				201 9				202 0				202 1				202 2				Thereafte r				Tota l
Lease payments		$	6,385			$	5,482			$	4,774			$	3,775			$	2,871			$	3,453			$	26,740

Commitments and Contingencies

The Company is party to various legal actions that it believes are ordinary in nature and incidental to the operation of its business. In the opinion of management, the outcome of the proceedings to which the Company is currently a party will

not

have a material adverse effect upon its results of operations, financial condition or cash flows.

During

2017,

the Company recorded

$1.0

million related to a settlement of a commercial dispute. The amount was included in “Administrative and general” expenses in the Consolidated Statements of Comprehensive Income. During

2016,

the Company paid

$1.7

million related to an arbitration decision for a

2015

foreign steel purchase. The amount was included in “Cost of materials sold” in the Consolidated Statements of Comprehensive Income.

In the normal course of business, the Company periodically enters into agreements that incorporate indemnification provisions. While the maximum amount to which the Company

may

be exposed under such agreements cannot be estimated, it is the opinion of management that these indemnifications are

not

expected to have a material adverse effect on the Company

’s results of operations or financial condition.

December 31,

201

approximately

280

of the hourly plant personnel are represented by

nine

separate collective bargaining units. The table below shows the expiration dates of the collective bargaining agreements. Negotiations are currently on-going for our collective bargaining unit in Duluth, Minnesota.

Facility	Expiration date
Duluth, Minnesota	December 21, 2017
St. Paul, Minnesota	May 25, 2018
Milan, Illinois	August 12, 2018
Locust, North Carolina	March 4, 2020
Romeoville, Illinois	May 31, 2020
Minneapolis, Minnesota (coil)	September 30, 2020
Indianapolis, Indiana	January 29, 2021
Minneapolis, Minnesota (plate)	March 31, 2022
Detroit, Michigan	August 31, 2022