Commitments and Contingencies

Environmental Matters

The Company is not aware of any potential unasserted environmental claims that may be brought against us. The Company is involved in environmental investigations and/or remediation at two of our plant sites no longer used for operations. The Company uses environmental consultants to assist us in evaluating our environmental liabilities in order to establish appropriate accruals in our financial statements. Accruals are recorded when environmental remediation is probable and the costs can be reasonably estimated. A number of factors affect the cost of environmental remediation, including the determination of the extent of contamination, the length of time remediation may require, the complexity of environmental regulations and the advancement of remediation technology. Considering these factors, the Company has estimated (without discounting) the costs of remediation, which will be incurred over a period of several years. Recovery from insurance or other third parties is not anticipated. The Company is not yet able to determine when such remediation activity will be complete, but estimates for certain remediation efforts are projected through fiscal 2020.

At both April 27, 2019 and April 28, 2018, the Company had accruals, primarily based upon independent engineering studies, for environmental matters of $1.1 million, of which $0.8 million was classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheets. The Company believes the provisions made for environmental matters are adequate to satisfy liabilities relating to such matters, however it is reasonably possible that costs could exceed accrued amounts if the selected methods of remediation do not reduce the contaminates at the sites to levels acceptable to federal and state regulatory agencies.

In fiscal 2019, the Company spent $0.1 million on remediation cleanups and related studies, compared with $0.3 million in fiscal 2018 and $1.2 million in fiscal 2017. The costs associated with environmental matters as they relate to day-to-day activities were not material in fiscal 2019, fiscal 2018 or fiscal 2017.

Pending Litigation

The Company, from time to time, is subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, patent infringement claims, employment-related matters and environmental matters. The Company considers insurance coverage and third party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is the opinion of the Company's management, based on the information available, that the Company has adequate reserves for these liabilities and that the ultimate resolution of these matters will not have a material adverse effect on the Company's consolidated financial statements.

Hetronic Germany-GmbH Matters

For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. The Company became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, the Company terminated all of its agreements with the Fuchs companies. On June 20, 2014, the Company filed a lawsuit against the Fuchs companies in the Federal District Court for the Western District of Oklahoma alleging material breaches of the distribution and assembly agreements and seeking damages, as well as various forms of injunctive relief. The defendants have filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, the Company amended its complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties. As of April 27, 2019, this matter has been set for trial in February 2020.

Lease Commitments

The Company has lease commitments expiring at various dates, principally for manufacturing equipment and warehouse and office space.

Rental expense under non-cancelable operating leases amounted to $7.6 million, $5.9 million and $4.9 million in fiscal 2019, 2018 and 2017, respectively.

In fiscal 2018, the Company assumed capital leases as part of the acquisition of Procoplast. The net book value of the capital lease assets as of April 27, 2019 and April 28, 2018 was $1.0 million and $1.4 million, respectively. The amortization of the capital lease assets is included in depreciation expense. The weighted average interest rate was 1.5% as of April 27, 2019.

As of April 27, 2019, future minimum lease payments under non-cancelable capitalized and operating leases are as follows:



(Dollars in Millions)	Capitalized Leases			Operating Leases
Fiscal Years:
2020	$	0.6		$	7.8
2021	0.5			5.6
2022	0.4			4.9
2023	0.2			4.2
2024	—			3.3
Thereafter	—			8.4
Net Minimum Lease Payments	1.7			$	34.2
Less Amount Representing Interest	—
Present Value of Net Minimum Lease Payments	1.7
Less Current Portion	(0.6		)
Long-term Obligations as of April 27, 2019	$	1.1