Shake Shack 2016 Annual Report Download - page 65

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Table of Contents
CONTRACTUAL OBLIGATIONS
The following table sets forth certain contractual obligations as of December 30, 2015 and the timing and effect that such commitments are expected to have on our
liquidity and capital requirements in future periods.
(in thousands) Total
Less than
1 Year
1-3
Years
3-5
Years
More Than
5 Years
Operating lease obligations (1) $ 176,096
$ 14,199
$ 31,993
$ 32,489
$ 97,415
Liabilities under tax receivable agreement (2) 173,090
2,157
15,442
16,038
139,453
Purchase obligations 73,683
18,731
9,588
9,660
35,704
Deferred compensation (3) 2,450
—
2,450
—
—
Notes payable (4) 313
—
—
—
313
TOTAL $ 425,632
$ 35,087
$ 59,473
$ 58,187
$ 272,885
(1) See Note 9 to the Consolidated Financial Statements included in Item 8 for further discussion of our leases.
(2) See Notes 14 and 17 to the Consolidated Financial Statements included in Item 8 for further discussion of our Tax Receivable Agreement and related liabilities.
(3) See Note 10 to the Consolidated Financial Statements included in Item 8 for further discussion of our deferred compensation liability.
(4) See Note 8 to the Consolidated Financial Statements included in Item 8 for further discussion of notes payable.
Purchase obligations include all legally binding contracts, including commitments for the purchase, construction or remodeling of real estate and facilities, firm
minimum commitments for inventory purchases, future minimum lease payments under non-cancelable operating leases without a possession date, equipment
purchases, marketing-related contracts, software acquisition/license commitments and service contracts.
Liabilities under Tax Receivable Agreement include amounts to be paid to the Continuing SSE Equity Owners, estimated over the next five years, assuming we
will have sufficient taxable income over the term of the Tax Receivable Agreement to utilize the related tax benefits.
The above table excludes non-cash obligations for deferred rent and deferred property incentives. In addition, other unrecorded obligations that have been excluded
from the contractual obligations table include contingent rent payments, property taxes, insurance payments and common area maintenance costs.
OFF-BALANCE SHEET ARRANGEMENTS
Except for operating leases entered into in the normal course of business, certain letters of credit entered into as security under the terms of several of our leases
and the unrecorded contractual obligations set forth above, we did not have any off-balance sheet arrangements as of December 30, 2015 .
63 | Shake Shack Inc. Form 10-K