NOTE 7 — COMMITMENTS AND CONTINGENCIES

Operating Leases

We primarily lease certain office and material handling equipment pursuant to agreements accounted for as operating leases. Rent expense aggregated under these operating leases was as follows for the last three fiscal years:


	Year ended June 29, 2017		Year ended June 30, 2016		Year ended June 25, 2015
Rent expense related to operating leases	$	1,880	$	1,775	$	1,545

Aggregate non-cancelable lease commitments under these operating leases with initial or remaining terms greater than one year are as follows:


Fiscal year ending
June 28, 2018	$	969
June 27, 2019		558
June 25, 2020		392
June 24, 2021		142
June 30, 2022		71
Thereafter		6

	$2,138

Litigation

We are currently a party to various legal proceedings in the ordinary course of business. While management presently believes that the ultimate outcomes of these proceedings, individually and in the aggregate, will not materially affect our financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur. Unfavorable outcomes could include substantial money damages in excess of any appropriate accruals which management has established. Were such unfavorable final outcomes to occur, there exists the possibility of a material adverse effect on our financial position, results of operations and cash flows.

We are subject to a class-action complaint for an employment related matter. Mediation for this matter occurred in June 2017, which for the first time we were provided with an initial monetary demand. In August 2017, we agreed in principle to a $1,200 settlement for which we are fully reserved at June 29, 2017. The non-monetary components of the settlement are still being finalized.