Commitments and Contingencies

12 Months Ended

Jan. 03, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13: Commitments and Contingencies

The following is a summary of the future minimum payments, required under non-cancelable operating leases, with terms in excess of one year, as of January 3, 2014:

(In thousands)
	Lease
Fiscal year	commitments
2014	$	7,718
2015		6,411
2016		4,489
2017		2,736
2018		1,354
Thereafter		2,795
	$	25,503

Total rent expense from property leases in fiscal 2013, 2012, and 2011 was $ 5,929,000, $ 5,481,000 and $ 5,180,000, respectively. Total expense from other operating leases in fiscal 2013, 2012, and 2011 was $ 1,704,000, $ 1,754,000 and $ 1,477,000, respectively. The Company had $ 350,000 in outstanding purchase commitments as of January 3, 2014. These commitments are expected to be fulfilled by the end of fiscal 2014.

The Company is party to a lawsuit arising from the Company’s hiring of employees from another consulting firm. Their former employer alleges that the Company aided and abetted the employees’ breach of duties owed to their former employer, wrongfully interfered with the former employer’s economic relationships, and breached a software license agreement. The lawsuit also alleges that the Company misappropriated the former employer’s trade secrets and violated unfair trade practice laws. The lawsuit does not allege a specific dollar amount of damages. The case is currently in discovery and no trial date has been set. The Company intends to vigorously defend itself. Although the Company’s ultimate liability in this matter cannot be determined based on the information currently available, the Company believes, after consultation with legal counsel, the ultimate resolution of this claim will not have a material adverse effect on its financial condition.  However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results.

In addition to the above matters, the Company is a party to various other legal actions from time to time and may be contingently liable in connection with claims and contracts arising in the normal course of business, the outcome of which the Company believes, after consultation with legal counsel, will not have a material adverse effect on its financial condition, results of operations or liquidity.  However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected results. All legal costs associated with litigation are expensed as incurred.