Commitments and Contingencies

12 Months Ended

Dec. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

(5)	Commitments and Contingencies

Lease Commitments

As of December 30, 2018, the future minimum rental commitments for all

non-cancelable

leases are as follows (in thousands):


	Operating		Capital
	Leases		Leases			Total
2019	$	40,752	$	2,396		$	43,148
2020		37,519		2,415			39,934
2021		34,538		2,433			36,971
2022		30,763		2,451			33,214
2023		27,388		2,474			29,862
Thereafter		100,310		23,781			124,091
Total future minimum rental commitments	$	271,270		35,950		$	307,220
Less – amounts representing interest				(18,944	)
Total principal payable on capital leases			$	17,006

Future minimum rental commitments for

non-cancelable

leases do not include

non-lease

components for common area maintenance, real estate taxes or insurance for the Company’s real estate leases or the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers.

As of December 30, 2018, the Company has additional operating leases for supply chain center tractors and trailers and a

build-to-suit

arrangement for a new building constructed by the Company’s landlord that had not yet commenced with estimated future minimum rental commitments of approximately $39.1 million. The Company has also entered into an additional finance lease for a supply chain center that had not yet commenced with estimated future minimum rental commitments of approximately $28.7 million. These leases are expected to commence in 2019 with lease terms of up to 15 years. These amounts are not included in the table above.

Legal Proceedings and Related Matters

The Company is a party to lawsuits, revenue agent reviews by taxing authorities and legal proceedings, of which the majority involve workers’ compensation, employment practices liability, general liability and automobile and franchisee claims arising in the ordinary course of business. The Company records legal fees associated with loss contingencies when they are probable and reasonably estimable.

Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. These matters referenced above could be decided unfavorably to us and could require us to pay damages or make other expenditures in amounts or a range of amounts that cannot be estimated with accuracy. In management’s opinion, these matters, individually and in the aggregate, should not have a significant adverse effect on the financial condition of the Company, and the established accruals adequately provide for the estimated resolution of such claims.

On February 14, 2011, Domino’s Pizza LLC was named as a defendant in a lawsuit along with Fischler Enterprises of C.F., Inc., a franchisee, and Jeffrey S. Kidd, the franchisee’s delivery driver, filed by Yvonne Wiederhold, the plaintiff, as Personal Representative of the Estate of Richard E. Wiederhold, deceased. The case involved a traffic accident in which the franchisee’s delivery driver is alleged to have caused an accident involving a vehicle driven by Richard Wiederhold. Mr. Wiederhold sustained spinal injuries resulting in quadriplegia and passed away several months after the accident. The jury returned a $10.1 million judgment for the plaintiff where the Company and Mr. Kidd were found to be 90% liable (after certain offsets and other deductions the final verdict was $8.9 million). In the second quarter of 2016, the trial court ruled on all post-judgment motions and entered the judgment. The Company denies liability and in the third quarter of 2016 filed an appeal of the verdict on a variety of grounds. On May 11, 2018, the court of appeals reversed and remanded the case to the trial court for a new trial based on the plaintiff’s improper closing argument. The Company continues to deny liability in this matter.