Buffalo Wild Wings 2015 Annual Report Download - page 34

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leases provide for contingent rental payments based on sales thresholds. We own the buildings in which 24% of our company-
owned restaurants operate.
The following table presents a summary of our contractual operating lease obligations, capital lease obligations, financing
obligations and commitments as of December 27, 2015:
Payments Due By Period (in thousands)
Total Less than one year 1-3 years 3-5 years After 5 years
Operating lease obligations $ 726,064 81,269 155,251 131,453 358,091
Capital lease obligations 50,363 4,779 9,665 9,939 25,980
Deemed landlord financing obligations 8,547 747 1,516 1,549 4,735
Commitments for restaurants under
development 42,563 1,926 5,804 5,842 28,991
Total $ 827,537 88,721 172,236 148,783 417,797
We believe the cash flows from our operating activities and our balance of cash and marketable securities will be
sufficient to fund our operations and building commitments and meet our obligations in the foreseeable future. We have a $200
million unsecured revolving credit facility to allow us to remain nimble for future acquisitions of businesses, investments in
affiliates, and share repurchases. There is a commitment fee on the average unused portion of the facility at a rate per annum
between 0.125% and 0.200%, which is dependent on our consolidated total leverage ratio. Our future cash outflows related to
income tax uncertainties amounted to $1.1 million as of December 27, 2015. These amounts were excluded from the
contractual obligations table due to the high degree of uncertainty regarding the timing of these liabilities.
Off-Balance Sheet Arrangements
As of December 27, 2015 and December 28, 2014, we had no off-balance sheet arrangements or transactions other
than contractual lease obligations.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09,
“Revenue with Contracts from Customers.” ASU 2014-09 supersedes the current revenue recognition guidance, including
industry-specific guidance. The guidance introduces a five-step model to achieve its core principal of the entity recognizing
revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services. The updated guidance is effective for interim and annual periods
beginning after December 15, 2017 and early adoption is permitted only for interim and annual periods beginning after
December 15, 2016. We are currently evaluating the impact of the updated guidance on our consolidated financial statements.
In February 2015, the FASB issued ASU 2015-02, "Consolidation: Amendments to the Consolidation Analysis." ASU
2015-02 modifies the analysis that must be performed to determine whether a reporting entity should consolidate certain types
of legal entities. The updated guidance is effective for interim and annual periods beginning after December 15, 2015, and early
adoption is permitted. We are currently evaluating the impact of the updated guidance on our consolidated financial statements.
In April 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software: Customer's
Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance related to a customer's
accounting for fees paid in a cloud computing arrangement. The updated guidance is effective for interim and annual periods
beginning after December 15, 2015, and early adoption is permitted. We do not believe the adoption of ASU 2015-05 will have
a significant impact on our consolidated financial statements.
In November 2015, the FASB issued ASU 2015-17, “Income Taxes: Balance Sheet Classification of Deferred Taxes.”
ASU 2015-17 requires that deferred income tax liabilities and assets be classified as non-current in a statement of financial
position. The Company elected early adoption of this guidance for the fiscal year ended December 27, 2015, on a prospective
basis. The adoption of this ASU allows the Company to simplify its presentation of deferred income tax liabilities and assets.
Prior periods were not retrospectively adjusted.