Financial Instruments with Off-Balance Sheet Risk

12 Months Ended

Dec. 29, 2019

Investments, All Other Investments [Abstract]

Financial Instruments with Off-Balance Sheet Risk

(9) Financial Instruments with Off-Balance Sheet Risk

The Company is a party to stand-by letters of credit and financial guarantees with off-balance sheet risk. The Company’s exposure to credit loss for stand-by letters of credit and financial guarantees is represented by the contractual amounts of these instruments. The Company uses the same credit policies in making conditional obligations as it does for on-balance sheet instruments. Total conditional commitments under letters of credit as of December 29, 2019 and December 30, 2018 were $41.4 million and $48.1 million, respectively, and total conditional obligations under surety bonds were $7.6 million as of December 29, 2019. These instruments relate to the Company’s insurance programs and supply chain center leases. The Company has also guaranteed lease payments related to certain franchisees’ lease arrangements (Note 5).