Commitments, Contingencies and Litigation

Operating Leases

The Company is a lessee of office buildings, transportation equipment, warehouses and storage facilities, other equipment, facilities and properties under operating lease agreements that expire at various dates. Rent expense (including rentals under short-term leases) was $6.4 million and $18.9 million for the three and nine months ended June 30, 2018, respectively, and $6.1 million and $19.2 million for the three and nine months ended June 30, 2017, respectively.

Future minimum non-cancellable rental payments as of June 30, 2018 are as follows:



2018	$	14.0
2019	8.9
2020	6.7
2021	5.4
2022	3.8
Thereafter	0.4
Total	$	39.2

Capital Leases

The Company leases certain equipment and facilities under capital lease agreements. As of June 30, 2018, future minimum lease payments under capital leases were as follows:



2018	$	7.7
2019	7.4
2020	7.0
2021	6.9
2022	11.7
Thereafter	25.9
Total minimum capital lease payments	66.6
Less amount representing executory costs	(15.7		)
Less amount representing interest	(16.0		)
Present value of net minimum capital lease payments	$	34.9

Environmental Remediation

Due to the nature of its business, the Company is subject to various laws and regulations pertaining to the environment and to the sale, handling, transportation and disposal of chemicals and hazardous materials. These laws pertain to air and water, the management of solid and hazardous wastes, transportation and human health and safety.

The Company’s reserves will be subject to numerous uncertainties that affect its ability to accurately estimate its costs, or its share of costs if multiple parties are responsible. These uncertainties involve the legal, regulatory and enforcement parameters governing environmental assessment and remediation, the nature and extent of contamination, the extent of required remediation efforts, the choice of remediation methodology, availability of insurance coverage and, in the case of sites with multiple responsible parties, the number and financial strength of any other potentially responsible parties.

Other Legal Proceedings

The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities, including product liability claims. Management believes that any liability that may ultimately result from the resolution of these matters will not have a material adverse effect on the financial condition or results of operations of the Company.

Other Contingencies

In June 2014, the Predecessor self-disclosed to the DTSC that an inventory of its Fairfield facility had revealed potential violations of RCRA and the California Health and Safety Code. Although no formal proceeding has been initiated, the Company expects the DTSC to seek payment of fines or other penalties for non-compliance. The Company does not expect the amount of any such fine or other penalty to have a material adverse effect on its business, financial position or results of operations.