Commitments and Contingencies

3 Months Ended

Mar. 26, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We have guarantees related to leases and franchisees’ loans on certain Pilot Flying J locations. In addition, we have arranged loan programs for specific new franchise restaurants and franchise restaurant remodels. Payments under these guarantees would result from the inability of a franchisee to fund required payments when due. Through March 26, 2014, no events had occurred that caused us to make payments under the guarantees.

There were $6.2 million and $6.1 million of loans outstanding under these programs as of March 26, 2014 and December 25, 2013, respectively. As of March 26, 2014, the maximum amounts payable under the lease guarantee and loan guarantees were $2.0 million and $1.0 million, respectively. As a result of these guarantees, we have recorded liabilities of approximately $0.1 million as of March 26, 2014 and December 25, 2013, which are included as a component of other noncurrent liabilities and deferred credits in our Condensed Consolidated Balance Sheets and other nonoperating expense in our Condensed Consolidated Statements of Income.

There are various claims and pending legal actions against or indirectly involving us, incidental to and arising out of the ordinary course of the business. In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company's consolidated results of operations or financial position.