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Commitments and Contingencies
12 Months Ended
Dec. 28, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 17 – Commitments and Contingencies

 

Operating Leases

 

We lease facilities and equipment under non-cancelable operating leases expiring through 2033. We expect that in the normal course of business, leases will be renewed or replaced by other leases.

 

Future minimum annual rental payments under our non-cancelable operating leases as of December 28, 2013 were:

 2014 $75,394 
 2015  61,238 
 2016  45,154 
 2017  32,369 
 2018  26,497 
 Thereafter  61,680 
  Total minimum operating lease payments $302,332 

Total rental expense for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 was $70.8 million, $68.2 million and $65.5 million.

Capital Leases

 

We lease certain equipment under capital leases. Future minimum annual lease payments under our capital leases together with the present value of the minimum capital lease payments as of December 28, 2013 were:

 2014 $847 
 2015  487 
 2016  269 
 2017  35 
 2018  - 
 Thereafter  - 
 Total minimum capital lease payments  1,638 
  Less: Amount representing interest at 2.00% to 16.44%  (128) 
  Total present value of minimum capital lease payments$1,510 

Capital Expenditures

 

We sometimes enter into certain commitments regarding capital expenditures. As of December 28, 2013, we have capital expenditure commitments of $1.6 million due within one year.

Purchase Commitments

 

In our health care distribution business, we sometimes enter into long-term purchase commitments to ensure the availability of products for distribution. Future minimum annual payments for inventory purchase commitments as of December 28, 2013 were:

 2014 $41,920 
 2015  22,076 
 2016  22,457 
 2017  23,580 
 2018  24,759 
 Thereafter  53,294 
  Total minimum inventory purchase commitment payments$188,086 

Litigation

 

From time to time, we may become a party to legal proceedings, including, without limitation, product liability claims, employment matters, commercial disputes, governmental inquiries and investigations, and other matters arising out of the ordinary course of our business. In our opinion, pending matters will not have a material adverse effect on our financial condition or results of operations.

 

As of December 28, 2013, we had accrued our best estimate of potential losses relating to claims that were probable to result in a liability and for which we were able to reasonably estimate a loss. This accrued amount, as well as related expenses, was not material to our financial position, results of operations or cash flows. Our method for determining estimated losses considers currently available facts, presently enacted laws and regulations and other external factors, including probable recoveries from third parties.

Employment, Consulting and Non-Compete Agreements

 

We have definite-lived employment, consulting and non-compete agreements that have varying base aggregate annual payments for the years 2014 through 2018 and thereafter of approximately $13.0 million, $2.7 million, $2.1 million, $2.5 million, $0.2 million and $2.2 million. We also have lifetime consulting agreements that provide for current compensation of $0.5 million per year, increasing $25 every fifth year with the next increase in 2017. In addition, some agreements have provisions for additional incentives and compensation.