2022-009 - Laserfiche WebLink

Home Browse Search

OHL USA, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 Note 19 - Contingencies The Company is contingently liable to its surety under a general indemnity agreement. Under this agreement, the Company agrees to indemnify the surety for any payments made on its behalf. The Company believes that all contingent liabilities will be satisfied by its performance on the specific contracts covered by the ag-eement. The Company is involved in various legal proceedings and litigation arising in the ordinary course of business. The Company intends to vigorously dispute liability for the various claims. It is too early to determine whether the out:;ome of such proceedings and litigation will have a material adverse effect on the Company's consolidated financial statements. The Company has letters of credit outstanding aggregating $15,994,396 for the benefit of its insurance carriers. The letters of credit are in varying amounts. The letters of credit expire at varying times through December 2023. The letters of credit have not been drawn upon at December 31, 2020. The Company make contributions to union -administered defined benefit pension plans under collectively bargained agreements. If the Company were to withdraw from any of these plans or should any of the plans be terminated, the Company could be liable for a proportionate share of the unfunded actuarial present value of plan benefits at the date of withdrawal or termination. The amount of the potential impact to the Company of such unfunded liability is not known. The Company is self-insured for losses and liabilities related to medical insurance claims up to a predetermined amount, above which th_rd-party insurance applies. Losses are accrued at the maximum potential loss exposure based on the Company's predetermined amount set forth in the medical insurance plan. It is a least reasonably possible that these estimates will change in the near term. At December 31, 2020, the Company's medical insurance accrual was approximately $1,872,000 and is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. Community is partially self-insured for workers' compensation, general liability and automobile claims up to $250,000 per occurrence, subject to an annual aggregate limitation of $4,000,000 during the year ended December 31, 2020. Claims over $250,000 per occurrence or aggregating in excess of the correspondirg annual aggregate limitation per year are covered by a stop -loss insurance policy. Community assumes the risk under these insurance policies for claims less than $250,000. Insurance losses for claims use historical experience and certain actuarial assumptions followed in the insurance industry. The estimate of the insurance liability includes an estimate of incurred, but not reported claims based on data compiled from historical experience. Clair -is paid are charged against the accrued insurance losses. Accrued insurance reserves at December 31, 2020 totaled $3,215,238, which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. 33