10. COMMITMENTS

Leases

The Company is obligated under capital leases for certain furniture and office equipment that expire at various dates through the year 2017.

The Company also leases certain office facilities under non-cancelable operating leases that expire at various dates through the year 2017 and is committed under non-cancelable operating leases for the lease of computer equipment and automobiles through the year 2015.

Future minimum rental payments under capital and non-cancelable operating leases are summarized as follows:

	Capital			Operating
Fiscal year:
2015	$	352,000		$	1,862,000
2016		259,000			965,000
2017		56,000			695,000
2018		—			502,000
2019		—			494,000
Thereafter		—			49,000

Total future minimum lease payments		667,000		$	4,567,000


Amount representing maintenance		(24,000	)
Amount representing interest (at rates ranging from 3.25% to 3.75%)		(13,000	)

Present value of net minimum lease payments under capital leases		630,000
Less current portion		324,000

	$	306,000

During the fiscal year ended January 2, 2015, the Company moved certain offices to new locations and closed certain virtual offices. As a result of the office closures and relocations, the Company recorded lease abandonment expense, net, of $9,000. This expense includes future rental obligations and other costs associated with the leased space net of the fair value of subleases.

Rent expense and related charges for common area maintenance for all facility operating leases for fiscal years 2014, 2013 and 2012 was approximately $3,004,000, $3,405,000 and $3,615,000, respectively.

The following is a reconciliation of the liability for lease abandonment expense for fiscal years 2014 and 2013:

	Fiscal 2014			Fiscal 2013
Liability for abandoned leases as of beginning of year	$	122,000		$	162,000
Lease abandonment expense, net		9,000			30,000
Lease payments on abandoned leases, net of sublease payments		(153,000	)		(189,000	)
Other		66,000			119,000

Liability for abandoned leases as of the end of the year	$	44,000		$	122,000

The current portion of the liability for abandoned leases is included in accrued liabilities and the non-current portion is included in deferred lease obligations in the accompanying consolidated balance sheets.

Employee Benefit Plans

The Company has a qualified profit sharing plan (the Plan) pursuant to Code Section 401(a) and qualified cash or deferred arrangement pursuant to Code Section 401(k) covering substantially all employees. Employees may elect to contribute up to 50% of compensation limited to the amount allowed by tax laws. Company contributions are made solely at the discretion of the Company's board of directors. The Company made matching contributions of approximately $624,000, $507,000 and $248,000 during fiscal years 2014, 2013 and 2012, respectively.

The Company has a discretionary bonus plan for regional managers, division managers and others as determined by the Company president. Bonuses are awarded if certain financial goals are achieved. The financial goals are not stated in the plan; rather they are judgmentally determined each year. In addition, the board of directors may declare discretionary bonuses to key employees and all employees are eligible for what the Company refers to as the "hot hand" bonus program, which pays awards for outstanding performance. The Company's compensation committee of the board of directors determines the compensation of the president. Bonus expense for fiscal years 2014, 2013 and 2012 totaled approximately $1,500,000, $262,000 and $258,000, respectively, of which approximately $1,450,000 and $31,000 is included in accrued liabilities at January 2, 2015 and December 27, 2013, respectively.

Post employment health benefits

In May 2006, the Company's board of directors approved providing lifetime health insurance coverage for Win Westfall, the Company's former chief executive officer and current chairman of the board of directors, and his spouse and for Linda Heil, the widow of the Company's former chief executive officer, Dan Heil. These benefits relate to past services provided to the Company. Accordingly, there is no unamortized compensation cost for the benefits.

Included in accrued liabilities in the accompanying consolidated balance sheets related to this obligation is the present value of expected payments for health insurance coverage, $139,000 as of January 2, 2015 and $137,000 as of December 27, 2013.