COMMITMENTS AND CONTINGENCIES

9 Months Ended

Oct. 01, 2016

Commitments and Contingencies Disclosure [Abstract]

Litigation. The Company is occasionally subject to litigation or other legal proceedings in the normal course of its business. The Company does not believe that the outcome of any currently pending legal matters, individually or collectively, will have a material effect on the business or financial condition of the Company.

Sale-leaseback. During the Third Quarter, the Company entered into a sale-leaseback agreement for its approximately 518,000 square foot warehouse and distribution center in Dallas, Texas. The sales price was $33.0 million. The transaction resulted in a gain of $6.7 million net of taxes and fees in the Third Quarter and a deferred gain of $13.2 million to be amortized to rent expense over the initial lease term. The leaseback has a 10-year term with two 5-year renewal options and is classified as an operating lease. As of October 1, 2016, the estimated future minimum lease payments under the lease were as follows (in thousands):



Fiscal Year
2016 remaining	$	485
2017	1,950
2018	1,989
2019	2,029
2020	2,070
Thereafter	12,726
Total	$	21,249