Shake Shack 2016 Annual Report Download - page 100

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Table of Contents
NOTE 16 : SUPPLEMENTAL CASH FLOW INFORMATION
The following table sets forth supplemental cash flow information for fiscal 2015 , 2014 and 2013 :
2015
2014
2013
Cash paid for:
Income taxes, net of refunds $ 416
$ 836
$ 639
Interest, net of amounts capitalized 92
123
19
Non-cash investing activities:
Accrued purchases of property and equipment 4,904
3,577
234
Property and equipment acquired through landlord incentives —
6,000
—
Class A common stock issued in connection with the acquisition of the Former SSE Equity Owners 6
—
—
Class A common stock issued in connection with the USC Merger 2
—
—
Non-cash financing activities:
Cancellation of Class B common stock in connection with the Organizational Transactions (6)
—
—
Class A common stock issued in connection with the redemption of LLC Interests 6
—
—
Cancellation of Class B common stock in connection with the redemption of LLC Interests (6)
—
—
Cancellation of Class B common stock in connection with the USC Merger (2)
—
—
Establishment of liabilities under tax receivable agreement 173,090
—
—
NOTE 17 : COMMITMENTS AND CONTINGENCIES
Lease Commitments
We are obligated under various operating leases for Shacks and our home office space, expiring in various years through 2032. Under certain of these leases, we
are liable for contingent rent based on a percentage of sales in excess of a specified threshold and are responsible for our proportionate share of real estate taxes and
utilities. See Note 9 , Leases.
As security under the terms of several of our leases, we are obligated under letters of credit totaling $160 as of December 30, 2015 . The letters of credit expire on
April 23, 2016 and February 28, 2026. In addition, in December 2013, we entered into an irrevocable standby letter of credit in conjunction with our home office
lease in the amount of $80 . The letter of credit expires in September 2016 and renews automatically for one -year periods through September 30, 2019.
Purchase Commitments
Purchase obligations include legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm
minimum commitments for inventory purchases, equipment purchases, marketing-related contracts, software acquisition/license commitments and service
contracts. These obligations are generally short-term in nature and are recorded as liabilities when the related goods are received or services rendered. We also
enter into long-term, exclusive contracts with certain vendors to supply us with food, beverages and paper goods, obligating us to purchase specified quantities.
These volume commitments are not subject to any time limit and there are no material financial penalties associated with these agreements in the event of early
termination.
Shake Shack Inc. Form 10-K | 98