Panera Bread 2013 Annual Report Download - page 44

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in other operating expenses in the Consolidated Statements of Comprehensive Income. No impairment loss was recognized during
the fiscal year ended December 27, 2011.
Contractual Obligations and Other Commitments
In addition to our planned capital expenditure requirements, we have certain other contractual and committed cash obligations.
Our contractual cash obligations consist of non-cancelable operating leases for our bakery-cafes, fresh dough facilities and trucks,
and support centers; capital leases; purchase obligations primarily for certain commodities; and uncertain tax positions. Lease
terms for our trucks are generally for five to seven years. The reasonably assured lease terms for most bakery-cafe and support
center leases is the initial non-cancelable lease term plus one renewal option period, which generally equates to an aggregate of
15 years. The reasonably assured lease term for most fresh dough facilities is the initial non-cancelable lease term plus one to
two renewal periods, which generally equates to an aggregate of 20 years. Lease terms generally require us to pay a proportionate
share of real estate taxes, insurance, common area maintenance, and other operating costs. Certain bakery-cafe leases provide for
contingent rental (i.e., percentage rent) payments based on sales in excess of specified amounts, scheduled rent increases during
the lease terms, and/or rental payments commencing at a date other than the date of initial occupancy. As of December 31, 2013,
we expect cash expenditures under these lease obligations, purchase obligations, and uncertain tax positions to be as follows for
the periods indicated (in thousands):
Less than
1 year
1-3
years
3-5
years
More than
5 years Total
Operating leases (1) . . . . . . . . . $ 134,614 $ 264,561 $ 254,616 $ 676,126 $ 1,329,917
Capital lease obligations (1) . . . 500 1,013 1,033 3,602 6,148
Purchase obligations (2) . . . . . . 271,354 44 — — 271,398
Uncertain tax positions (3) . . . . 554 1,140 590 455 2,739
Total . . . . . . . . . . . . . . . . . . . . $ 407,022 $ 266,758 $ 256,239 $ 680,183 $ 1,610,202
(1) See Note 13 to the consolidated financial statements for further information with respect to our operating and capital leases.
(2) Relates to certain commodity and service agreements where we are committed as of December 31, 2013 to purchase a fixed
quantity over a contracted time period.
(3) See Note 14 to the consolidated financial statements for further information with respect to our uncertain tax positions.
Off-Balance Sheet Arrangements
As of December 31, 2013, we guaranteed operating leases of 25 franchisee or affiliate locations, which we account for in accordance
with the accounting requirements for guarantees. These guarantees are primarily a result of our sales of Company-owned bakery-
cafes to franchisees and affiliates, pursuant to which we exercised our right to assign the lease or sublease for the bakery-cafe but
remain liable to the landlord for the remaining lease term in the event of a default by the assignee. These leases have terms expiring
on various dates from January 31, 2014 to September 30, 2027 and have a potential amount of future rental payments of
approximately $20.1 million as of December 31, 2013. Our obligation from these leases will decrease over time as these operating
leases expire. We have not recorded a liability for certain of these guarantees as they arose prior to the implementation of the
accounting requirements for guarantees and, unless modified, are exempt from its requirements. We have not recorded a liability
for those guarantees issued after the effective date of the accounting requirements because the fair value of these lease guarantee
was determined by us to be insignificant individually, and in the aggregate, based on analysis of the facts and circumstances of
each such lease and each such assignee's performance, and we did not believe it was probable we would be required to perform
under any guarantees at the time the guarantees were issued. We have not had to make any payments related to any of these
guaranteed leases. Applicable assignees continue to have primary obligation for these operating leases. As of December 31, 2013,
future commitments under these leases were as follows (in thousands):
Less than
1 year
1-3
years
3-5
years
More than
5 years Total
Subleases and Lease Guarantees (1). . . . . . . 3,518 4,709 4,050 7,856 $ 20,133
(1) Represents aggregate minimum requirement — see Note 13 to the consolidated financial statements for further information
with respect to our lease guarantees.