12.Commitments and Contingencies

The Company is a shareholder of South Atlantic Canners, Inc. (“SAC”), a manufacturing cooperative from which it is obligated to purchase 17.5 million cases of finished product on an annual basis through June 2024. The Company is also a shareholder of Southeastern Container (“Southeastern”), a plastic bottle manufacturing cooperative from which it is obligated to purchase at least 80% of its requirements of plastic bottles for certain designated territories. The Company has an equity ownership in each of the entities. Following is a summary of purchases from these manufacturing cooperatives:

	Third Quarter				First Three Quarters
(in thousands)	2016		2015		2016		2015
Purchases from SAC	$	39,831	$	38,501	$	115,563	$	107,165
Purchases from Southeastern		20,530		15,180		57,839		47,596
Total purchases from manufacturing cooperatives	$	60,361	$	53,681	$	173,402	$	154,761

The Company guarantees a portion of SAC’s and Southeastern’s debt, which resulted primarily from the purchase of production equipment and facilities and expires at various dates through 2023. The amounts guaranteed were as follows:

(in thousands)	October 2, 2016		January 3, 2016		September 27, 2015
Guaranteed portion of debt - SAC	$	23,938	$	19,057	$	22,657
Guaranteed portion of debt - Southeastern		8,587		11,467		10,212
Total guaranteed portion of debt - manufacturing cooperatives	$	32,525	$	30,524	$	32,869

The members of both cooperatives consist solely of Coca‑Cola bottlers. The Company does not anticipate either of these cooperatives will fail to fulfill its commitments. The Company further believes each of these cooperatives has sufficient assets, including production equipment, facilities and working capital, and the ability to adjust selling prices of its products to adequately mitigate the risk of material loss from the Company’s guarantees. In the event either of these cooperatives fails to fulfill its commitments under the related debt, the Company would be responsible for payments to the lenders up to the level of the guarantees. The table below summarizes the Company’s maximum exposure under these guarantees if these cooperatives had borrowed up to their aggregate borrowing capacity:

	October 2, 2016
(in thousands)	South Atlantic Canners, Inc.		Southeastern Container		Total Manufacturing Cooperatives
Maximum guaranteed debt	$	23,938	$	25,251	$	49,189
Equity investments*		4,102		18,228		22,330
Maximum total exposure, including equity investments	$	28,040	$	43,479	$	71,519

* NOTE: Recorded in other assets on the Company’s consolidated balance sheets.

The Company holds no assets as collateral against the SAC or Southeastern guarantees, the fair value of which is immaterial to the Company’s consolidated financial statements. The Company monitors its investments in SAC and Southeastern and would be required to write down its investment if an impairment was identified and the Company determined it to be other than temporary. No impairment of the Company’s investments in SAC or Southeastern has been identified as of October 2, 2016 nor was there any impairment in 2015.

The Company has standby letters of credit, primarily related to its property and casualty insurance programs. Letters of credit totaled $29.7 million, $26.9 million and $26.4 million on October 2, 2016, January 3, 2016 and September 27, 2015, respectively.

The Company participates in long-term marketing contractual arrangements with certain prestige properties, athletic venues and other locations. The future payments related to these contractual arrangements as of October 2, 2016 amounted to $68.9 million and expire at various dates through 2024.

The Company is involved in various claims and legal proceedings which have arisen in the ordinary course of its business. Although it is difficult to predict the ultimate outcome of these claims and legal proceedings, management believes the ultimate disposition of these matters will not have a material adverse effect on the financial condition, cash flows or results of operations of the Company. No material amount of loss in excess of recorded amounts is believed to be reasonably possible as a result of these claims and legal proceedings.