ICHOR HOLDINGS, LTD. Commitments Disclosure
Note 6 – Commitments and Contingencies
Operating Leases
We lease facilities under various non-cancellable operating leases expiring through 2024. In addition to base rental payments, we are responsible for utilities and our proportionate share of operating expenses. Escalating rental payments are recognized on a straight‑line basis over the lease term. Rent expense for 2018, 2017, and 2016, was $5.5 million, $3.6 million, and $2.9 million, respectively. Future minimum lease payments for non-cancelable operating leases are as follows:
|
|
|
Future minimum lease payments |
|
|
|
2019 |
|
$ |
4,910 |
|
|
2020 |
|
|
4,873 |
|
|
2021 |
|
|
4,356 |
|
|
2022 |
|
|
3,820 |
|
|
2023 |
|
|
1,103 |
|
|
Thereafter |
|
|
120 |
|
|
|
|
$ |
19,182 |
|
Litigation
We are periodically involved in legal actions and claims that arise as a result of events that occur in the normal course of operations. The ultimate resolution of these actions is not expected to have a material adverse effect on our financial position or results of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Mar 8, 2019 | Showing above |
| 2017 | Mar 13, 2018 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.