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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8.

COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases its corporate headquarters and certain equipment. These leases generally have initial terms of one to 12 years and have renewal options for additional periods. Certain of the leases also contain escalation clauses based upon increases in costs related to the properties. Lease obligations, with initial or remaining terms of one or more years, consist of the following at December 31, 2016:

 

2017

 

$

1,669

 

2018

 

 

2,831

 

2019

 

 

2,870

 

2020

 

 

2,904

 

2021

 

 

2,963

 

Thereafter

 

 

1,753

 

 

 

$

14,990

 

 

Total rent expense for 2016, 2015 and 2014 was $2,185, $2,304 and $2,237, respectively.

Litigation

The Company is involved in various claims and routine litigation matters that arise in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the outcomes of such matters are not anticipated to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows in future years and management believes the range of reasonably possible losses from current matters is immaterial.

Contractual Commitments

The Company has entered into agreements with various food suppliers. These agreements may provide for annual pricing, annual purchase obligations, exclusivity in the production of certain products, as well as rebates if certain volume thresholds are exceeded, with terms of five years or less. The Company has total purchase obligations of $28,382 as of December 31, 2016. The Company anticipates it will meet all annual purchase obligations outstanding at December 31, 2016.