Note 5: Commitments and Contingencies

We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims alleging violations of federal and state law regarding workplace and employment matters, discrimination and similar matters. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition.

We lease certain property and equipment under various non-cancelable operating leases. Some of the leases include options for renewal or extension on various terms. Most of the leases require us to pay property taxes, insurance and maintenance of the leased assets. Certain leases also have provisions for additional contingent rentals based on revenues.

The following table sets forth our lease commitments as of May 1, 2016:

 

1 year or less		$	73,740
2 years			73,076
3 years			69,116
4 years			63,190
5 years			55,766
Thereafter			491,900
Total future payments		$	826,788

As of May 1, 2016 our signed operating lease agreements included future sites in Oakville (Toronto), Ontario, Las Vegas, Nevada and Carlsbad, California which are expected to open in the future. The landlord has fulfilled the obligations to commit us to the lease terms under these agreements and therefore, the future obligations related to these locations are included in the table above.

As of May 1, 2016, we have signed seventeen additional lease agreements for future sites. Our commitments under these agreements are contingent upon among other things, the landlord’s delivery of access to the premises for construction. Future obligations related to these agreements are not included in the table. Subsequent to the quarter ended May 1, 2016, our future sites located in Fresno, California and Toledo, Ohio, included in the seventeen lease agreements noted above, have been delivered by the landlord resulting in future commitments of approximately $17,000 and $21,000, respectively.