COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 30, 2012

COMMITMENTS AND CONTINGENCIES

(5) COMMITMENTS AND CONTINGENCIES

Lease Commitments

As of December 30, 2012, the future minimum rental commitments for all non-cancelable leases are as follows (in thousands):

	Operating		Capital
	Leases		Leases			Total
2013	$	37,169	$	983		$	38,152
2014		32,461		736			33,197
2015		28,888		736			29,624
2016		24,124		736			24,860
2017		18,450		736			19,186
Thereafter		43,216		491			43,707
Total future minimum rental commitments	$	184,308		4,418		$	188,726
Less – amounts representing interest				(907	)
Total principal payable on capital leases			$	3,511

Legal Proceedings and Related Matters

The Company is a party to lawsuits, revenue agent reviews by taxing authorities and legal proceedings, of which the majority involve workers’ compensation, employment practices liability, general liability and automobile and franchisee claims arising in the ordinary course of business. The Company records legal fees associated with loss contingencies when they are probable and reasonably estimable.

Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. Included in the matters described above, the Company is party to three employment practice cases and five casualty cases. We have established legal and insurance accruals for losses relating to these cases which we believe are reasonable based upon our assessment of the current facts and circumstances, however, it is reasonably possible that our ultimate losses could exceed the amounts recorded by $5.0 million. The remaining cases described above could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated with accuracy. In management’s opinion, these matters, individually and in the aggregate, should not have a significant adverse effect on the financial condition of the Company, and the established accruals adequately provide for the estimated resolution of such claims.