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Commitments and Contingencies
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Sep. 27, 2014
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies |
Commitments and Contingencies
Facilities Leases
The Company’s corporate headquarters are located in Carson, California. The Company’s corporate headquarters has an initial lease term of five years through October 2016, and optional renewals through January 2020. The Company also leased a warehouse in Carson, California, under a month to month agreement until July 29, 2014, when the warehouse was permanently closed as discussed in “Note 11 – Restructuring Costs”. The Company leases warehouse space in Chesapeake, Virginia under an agreement scheduled to expire in June 2016, renewable for an additional thirty-six months through June 2019. The Company’s Philippines subsidiary leases office space under a sixty-three months agreement through May 2015, renewable for an additional sixty months through April 2020. As of the date hereof, the Company has not committed to any facilities lease renewals.
Facility rent expense for the thirteen weeks ended September 27, 2014 and September 28, 2013 was $457 and $496, respectively. The Company’s facility rent expense was inclusive of amounts charged from a related party during the thirteen weeks ended September 27, 2014 and September 28, 2013 of $97 and $94, respectively. Facility rent expense for the thirty-nine weeks ended September 27, 2014 and September 28, 2013 was $1,532 and $1,670, respectively. The Company’s facility rent expense was inclusive of amounts charged from a related party in connection with the Company’s Carson Warehouse during the thirty-nine weeks ended September 27, 2014 and September 28, 2013 of $428 and $281, respectively.
The following table summarizes the future minimum lease payments under non-cancellable operating leases as of September 27, 2014 (in thousands):
Capital lease commitments as of September 27, 2014 were as follows (in thousands):
Legal Matters
Asbestos. A wholly-owned subsidiary of the Company, Automotive Specialty Accessories and Parts, Inc. and its wholly-owned subsidiary WAG, are named defendants in several lawsuits involving claims for damages caused by installation of brakes during the late 1960’s and early 1970’s that contained asbestos. WAG marketed certain brakes, but did not manufacture any brakes. WAG maintains liability insurance coverage to protect its and the Company’s assets from losses arising from the litigation and coverage is provided on an occurrence rather than a claims made basis, and the Company is not expected to incur significant out-of-pocket costs in connection with this matter that would be material to its consolidated financial statements.
The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of the date hereof, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flow of the Company. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations.
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