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SEC Filings

10-Q
NEXEO SOLUTIONS, INC. filed this Form 10-Q on 05/10/2018
Entire Document
 

13. 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 $6.0 million and $12.5 million for the three and six months ended March 31, 2018, respectively, and $6.7 million and $13.1 million for the three and six months ended March 31, 2017, respectively.

Future minimum non-cancellable rental payments as of March 31, 2018 are as follows:
2018
$
15.1

2019
10.0

2020
6.9

2021
5.8

2022
4.4

Thereafter
0.8

Total
$
43.0


Capital Leases

The Company leases certain equipment and facilities under capital lease agreements. As of March 31, 2018, future minimum lease payments under capital leases were as follows:
2018
$
8.2

2019
7.4

2020
7.1

2021
6.9

2022
12.9

Thereafter
26.5

Total minimum capital lease payments
69.0

Less amount representing executory costs
(16.3
)
Less amount representing interest
(16.5
)
Present value of net minimum capital lease payments
$
36.2


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.

On March 31, 2011, the Predecessor purchased certain assets of the global distribution business (the "Distribution Business") from Ashland (the "Ashland Distribution Acquisition"), evidenced by the ADA Purchase Agreement.  In the ADA Purchase Agreement, Ashland agreed to retain all known environmental remediation liabilities ("the Retained Specified Remediation Liabilities") and other environmental remediation liabilities unknown at the closing of the Ashland Distribution Acquisition related to the Distribution Business for which Ashland received notice prior to the fifth anniversary of the closing (the "Other Retained Remediation Liabilities") (collectively, the "Retained Remediation Liabilities").  Ashland’s liability for the Retained Remediation Liabilities is not subject to any claim thresholds or deductibles other than expenses the Predecessor incurs arising out of the Other Retained Remediation Liabilities. Had the Predecessor incurred expenses arising out of the Other Retained Remediation Liabilities, Ashland’s indemnification obligation would have been subject to an individual claim threshold of $0.2 million and an aggregate claim deductible of $5.0 million. Ashland’s indemnification obligations under the ADA

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