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ValleyCrest Holding Co. and Subsidiaries
<br />Notes to Consolidated Financial Statements (continued)
<br />13. Workers' Compensation Insurance (continued)
<br />reviewed and updated. Any adjustments resulting therefrom are reflected in current operations.
<br />As of April 30, 2008, the Company has recorded an accrued liability for workers' compensation
<br />insurance of $7,892,000. Management believes that the accrual is adequate to cover the losses
<br />incurred to date; however, this accrual is based on estimates and the ultimate liability may be
<br />more or less than the amount provided.
<br />14. Commitments
<br />The Company leases office facilities, acreage, and vehicles under operating leases with related
<br />and nonrelated parties, which expire on various dates through December 2020. The Company is
<br />also required to pay property taxes and insurance on most of these facilities. Minimum annual
<br />operating lease commitments are as follows:
<br />Aggregate rental expense, including month to month rentals and equipment rentals, was
<br />approximately $37,197,000 for the year ended April 30, 2008. Included in the above rental
<br />expense are rental payments to related parties aggregating $2,807,000 in 2008.
<br />15. Contingencies
<br />The Company is involved in litigation and various claims arising in the ordinary course of
<br />business. In the opinion of management, the ultimate disposition of these matters will not have a
<br />material adverse effect on the Company's consolidated financial statements.
<br />10 -n- ot
<br />-4134
<br />VolleyCrest Landscape Pm "air t.
<br />16 400 NO 127th ,y,ve. 22
<br />Miare i, FL 33013 -1051
<br />Related
<br />Nonrelated
<br />Parties
<br />Parties
<br />Total
<br />Year ending April 30:
<br />2008
<br />$ 2,807,000
<br />$ 22,938,000
<br />$ 25,745,000
<br />2009
<br />2,857,000
<br />17,803,000
<br />20,660,000
<br />2010
<br />2,907,000
<br />3,852,000
<br />6,759,000
<br />2011
<br />2,959,000
<br />2,632,000
<br />5,591,000
<br />2012
<br />3,011,000
<br />1,574,000
<br />4,585,000
<br />Thereafter
<br />6,798,000
<br />4,333,000
<br />11,131,000
<br />$ 21,339,000
<br />$ 53,132,000
<br />$ 74,471,000
<br />Aggregate rental expense, including month to month rentals and equipment rentals, was
<br />approximately $37,197,000 for the year ended April 30, 2008. Included in the above rental
<br />expense are rental payments to related parties aggregating $2,807,000 in 2008.
<br />15. Contingencies
<br />The Company is involved in litigation and various claims arising in the ordinary course of
<br />business. In the opinion of management, the ultimate disposition of these matters will not have a
<br />material adverse effect on the Company's consolidated financial statements.
<br />10 -n- ot
<br />-4134
<br />VolleyCrest Landscape Pm "air t.
<br />16 400 NO 127th ,y,ve. 22
<br />Miare i, FL 33013 -1051
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