Contractual Obligations
The following table summarizes the amount of payments due under specified contractual obligations as of
December 25, 2018 (in thousands):
Payments Due by Period
Less than More than
Total 1 year 1 - 3 Years 3 - 5 Years 5 years
Obligation under capital lease ................ $ 2,081 $ — $ — — 2,081
Interest on capital lease ...................... 5,210 276 559 566 3,809
Operating lease obligations ................... 927,330 50,030 99,499 100,091 677,710
Capital obligations.......................... 168,282 168,282 — — —
Total contractual obligations(1) ............... $ 1,102,903 $ 218,588 $ 100,058 $ 100,657 $ 683,600
(1) Excluded from this amount are certain immaterial items including unrecognized tax benefits under Accounting
Standards Codification ("ASC") 740 as they are immaterial.
We have no material minimum purchase commitments with our vendors that extend beyond a year. See notes 5
and 8 to the Consolidated Financial Statements for details of contractual obligations.
Off - Balance Sheet Arrangements
Except for operating leases (primarily restaurant leases), we do not have any off - balance sheet arrangements.Guarantees
As of December 25, 2018 and December 26, 2017, we are contingently liable for $14.8 million and $15.6 million,
respectively, for seven leases, listed in the table below. These amounts represent the maximum potential liability of
future payments under the guarantees. In the event of default, the indemnity and default clauses in our assignment
agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of
December 25, 2018, as the likelihood of default was deemed to be less than probable and the fair value of the guarantees
is not considered significant.
Lease Current Lease
Assignment Date Term Expiration
Everett, Massachusetts (1)(2) ............................................. September 2002 February 2023
Longmont, Colorado (1) ................................................. October 2003 May 2029
Montgomeryville, Pennsylvania (1) ........................................ October 2004 March 2021
Fargo, North Dakota (1)(2) ............................................... February 2006 July 2021
Logan, Utah (1) ........................................................ January 2009 August 2024
Irving, Texas (3) ....................................................... December 2013 December 2019
Louisville, Kentucky (3)(4) .............................................. December 2013 November 2023
(1) Real estate lease agreements for restaurant locations which we entered into before granting franchise rights to those
restaurants. We have subsequently assigned the leases to the franchisees, but remain contingently liable, under the
terms of the lease, if the franchisee defaults.
(2) As discussed in note 19, these restaurants are owned, in whole or part, by certain officers, directors and 5%
shareholders of the Company.
(3) Leases associated with a restaurant concept which was sold. The leases were assigned to the acquirer, but we
remain contingently liable under the terms of the lease if the acquirer defaults.
(4) We may be released from liability after the initial lease term expiration contingent upon certain conditions being
met by the acquirer.
Critical Accounting Policies and Estimates
The above discussion and analysis of our financial condition and results of operations are based upon our
consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these
financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenue and expenses, and disclosures of contingent assets and liabilities. Our significant accounting policies are
described in note 2 to the accompanying consolidated financial statements. Critical accounting policies are those that we