Commitments and Contingencies

We are involved in a variety of legal actions relating to personal injury, employment, environmental and other legal matters arising in the normal course of business, including, without limitation, those described below.

Environmental Matters

From time-to-time, we are involved in environmental-related proceedings by certain governmental agencies, which relate primarily to allegedly operating certain facilities in noncompliance with required permits. In addition to these proceedings, in the normal course of our business, we are subject to, among other things, periodic inspections by regulatory agencies, and we are involved in the remediation of various properties.

We also are involved in various property remediation efforts. In particular, we have four projects nearing completion, which we expect will be completed within previously established reserves. We also have four other projects on which we are currently working. Historically, with respect to these projects, we have borne our costs as part of our ongoing operations. As part of these latter efforts, in the fourth quarter of 2015, we determined it was likely that the parties that are contractually obligated to remediate PCE contamination at three of our previously purchased locations would not be able to continue to meet these obligations because of their respective financial condition. These acquisitions date as far back as the 1970s; the most recent one was in 2007. As a result of the foregoing, as of June 27, 2015 and June 28, 2014, we had remediation-related reserves of approximately $4,711 and $900 respectively, related to these matters. There was $4,405 of expense for these matters for fiscal year 2015 and $371 of expense for fiscal year 2014.

In order to determine whether any additional exposure for PCE remediation exists, we have also begun environmental assessments on an additional six sites which we acquired that had historical dry cleaning operations. With respect to these sites, while we believe costs are probable, they are not yet reasonably estimable. Therefore beyond amounts to cover the preliminary assessments, we have not recorded any reserve for these properties. While such charges may be material, we believe the likelihood that any charges will have a material adverse effect on our results of ongoing operations or financial position is remote, although the impact on reported operating results in any particular period may be material.

Legal Matters

The United States Office of Federal Contract Compliance Programs, or OFCCP, is, as part of routine audits, conducting a review of our employment practices. The OFCCP has issued a Predetermination Notice to one of our facilities and Notices of Violation to three others. The OFCCP has raised preliminary allegations of similar violations at five other facilities, but has not issued any Notices of Violations. We have been engaged in discussions with the OFCCP and believe that our practices are lawful and without bias. While we cannot predict the ultimate outcome of these matters with certainty and it is possible that we may incur additional losses in excess of established reserves, we believe the possibility of a material adverse effect on our results of operations or financial position is remote.

Leases

We lease certain facilities and equipment for varying periods. Most facility leases contain renewal options from one to five years. Management expects that in the normal course of business, leases will be renewed or replaced by other leases.

The following is a schedule as of June 27, 2015 of future minimum base rental payments for operating leases that had initial or remaining lease terms in excess of one year:



	Operating Leases
2016	$	24,561
2017	20,482
2018	16,313
2019	11,474
2020	9,347
2021 to 2024	14,162
Total minimum lease payments	$	96,339

Total rent expense for operating leases, including those with terms of less than one year, was $31,964 in fiscal year 2015, $31,677 in fiscal year 2014 and $30,858 in fiscal year 2013.