12.

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

2026.

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

$11.9

million,

$9.7

million and

$9.1

million for the years ended

December 31, 2018,

2017

and

2016,

respectively.

The future annual minimum lease payments as of

December 31, 2018

are as follows:

(in thousands)		2019				2020				2021				2022				2023				Thereafter				Total
Lease payments		$	6,155			$	5,405			$	4,681			$	3,706			$	2,858			$	5,057			$	27,862

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, 2018,

approximately

315

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.

Facility	Expiration date
Hammond, Indiana	November 30, 2019
Locust, North Carolina	March 4, 2020
Romeoville, Illinois	May 31, 2020
Minneapolis coil, Minnesota	September 30, 2020
Indianapolis, Indiana	January 29, 2021
St. Paul, Minnesota	May 25, 2021
Milan, Illinois	August 12, 2021
Minneapolis plate, Minnesota	March 31, 2022
Detroit, Michigan	August 31, 2022