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Concentration of Credit Risk
12 Months Ended
Jan. 02, 2016
Risks And Uncertainties [Abstract]  
Concentration of Credit Risk

Note 14 – Concentration of Credit Risk

The Company provides financial assistance in the form of loans to some of its independent retailers for inventories, store fixtures and equipment and store improvements. Loans are generally secured by liens on real estate, inventory and/or equipment, personal guarantees and other types of collateral, and are generally repayable over a period of five to seven years. The Company establishes allowances for doubtful accounts based upon periodic assessments of the credit risk of specific customers, collateral value, historical trends and other information. The Company believes that adequate provisions have been recorded for any doubtful accounts. In addition, the Company may guarantee debt and lease obligations of independent retailers. In the event these retailers are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of their debt and lease obligations, which would be due in accordance with the underlying agreements.

As of January 2, 2016, the Company has guaranteed the outstanding lease obligations of certain independent retailers and bank debt for one retailer in the amount of $0.4 million and $2.0 million, respectively. These guarantees, which are secured by certain business assets and personal guarantees of the respective retailers, represent the maximum undiscounted payments the Company would be required to make in the event of default. The Company believes these retailers will be able to perform under the lease agreements and that no payments will be required and no loss will be incurred under the guarantees. A liability representing the fair value of the obligations assumed under the guarantees is included in the accompanying consolidated financial statements. In the ordinary course of business, the Company also subleases and assigns various leases to third parties. As of January 2, 2016, the Company estimates the present value of its maximum potential obligations for subleases and assigned leases to be approximately $21.3 million and $17.5 million, respectively.