Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.8.0.1
Commitments and Contingencies
3 Months Ended
Mar. 29, 2018
Commitments and Contingencies.  
Commitments and Contingencies

7. Commitments and Contingencies

Lease Commitments

We lease our corporate office, retail locations and distribution centers through F&D, under long‑term operating lease agreements that expire in various years through 2038. Additionally, certain equipment is leased under short‑term operating leases.

Certain lease agreements include escalating rents over the lease terms. We expense rent on a straight‑line basis over the life of the lease, which commences on the date we have the right to control the property. The cumulative expense recognized on a straight‑line basis in excess of the cumulative payments is included in deferred rent in the accompanying balance sheets. Future minimum lease payments under non‑cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 29, 2018, were:

 

 

 

 

(in thousands)

    

Amount

Thirty-nine weeks ended December 27, 2018

 

$

67,163

2019

 

 

104,074

2020

 

 

104,322

2021

 

 

100,999

2022

 

 

93,476

Thereafter

 

 

606,510

Total minimum lease payments

 

$

1,076,544

 

Lease expense for the thirteen weeks ended March 29, 2018 and March 30, 2017 was approximately $22,005 thousand and $16,988 thousand, respectively.

Litigation

We are subject to other various legal actions, claims and proceedings arising in the ordinary course of business, including claims related to breach of contracts, products liabilities, intellectual property matters and employment related matters resulting from its business activities. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. These proceedings are not expected to have a material impact on our consolidated financial position, cash flows or results of operations.