24. Commitments and Contingencies

Collective Bargaining Agreements

While employees of the Company’s Brazilian operations are unionized, none of the labor force employed by the Company’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement.

Environmental

On September 30, 2004, the Company completed its acquisition of the polyester filament manufacturing assets located in Kinston, North Carolina from INVISTA S.a.r.l (“Invista”). The land for the Kinston site was leased pursuant to a 99 year ground lease (“Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency (“EPA”) and the North Carolina Department of Environment and Natural Resources (“DENR”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The Corrective Action program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and to clean it up to comply with applicable regulatory standards. Effective March 20, 2008, the Company entered into a Lease Termination Agreement associated with conveyance of certain assets at Kinston to DuPont. This agreement terminated the Ground Lease and relieved the Company of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to the Company’s period of operation of the Kinston site which was from 2004 to 2008. However, the Company continues to own a satellite service facility acquired in the INVISTA transaction that has contamination from DuPont’s operations and is monitored by DENR. This site has been remediated by DuPont, and DuPont has received authority from DENR to discontinue remediation, other than natural attenuation. DuPont’s duty to monitor and report to DENR will be transferred to the Company in the future, at which time DuPont must pay the Company for seven years of monitoring and reporting costs and the Company will assume responsibility for any future remediation and monitoring of the site. At this time, the Company has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same.

Operating Leases

The Company routinely leases sales and administrative office space, warehousing and distribution centers, manufacturing space, transportation equipment, manufacturing equipment, and other information technology and office equipment from third parties. In addition, Renewables leases farm land. Currently, the Company does not sub-lease any of its leased property.

Future minimum capital lease payments and future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of June 26, 2016 for the below fiscal years are:

	Capital leases			Operating leases
Fiscal 2017	$	4,814		$	3,784
Fiscal 2018		4,543			3,260
Fiscal 2019		4,333			2,331
Fiscal 2020		2,697			2,018
Fiscal 2021		288			1,722
Fiscal years thereafter		1,212			3,272
Total minimum lease payments	$	17,887		$	16,387
Less estimated executory costs		(858	)
Less interest		(1,231	)
Present value of net minimum capital lease payments		15,798
Less current portion of capital lease obligations		(4,261	)
Long-term portion of capital lease obligations	$	11,537

In December 2015, the Company entered into an agreement with a third party lender that provides for construction-period financing for certain build-to-suit assets. The Company has recorded project costs to construction in progress and the corresponding liability to construction financing (within long-term debt) of $6,629 as of June 26, 2016 and has existing future construction obligations of $4,471. The expected construction value of the build-to-suit assets is approximately $14,000.

Rental expenses incurred under operating leases and included in operating income consist of the following:

	For the Fiscal Year Ended
	June 26, 2016		June 28, 2015		June 29, 2014
Rental expenses	$	4,867	$	4,214	$	3,621

Unconditional Obligations

The Company is a party to unconditional obligations for certain utility and other purchase or service commitments. These commitments are non-cancelable, have remaining terms in excess of one year and qualify as normal purchases.

On a fiscal year basis, the minimum payments expected to be made as part of such commitments are as follows:

	2017		2018		2019		2020		2021		Thereafter
Unconditional purchase obligations	$	7,480	$	4,600	$	2,648	$	1,621	$	196	$	—
Unconditional service obligations		1,555		1,508		1,150		75		75		482
Total unconditional obligations	$	9,035	$	6,108	$	3,798	$	1,696	$	271	$	482

For fiscal 2016, 2015 and 2014, total costs incurred under these commitments consisted of the following:

	For the Fiscal Year Ended
	June 26, 2016		June 28, 2015		June 29, 2014
Costs for unconditional purchase obligations	$	26,790	$	28,971	$	31,386
Costs for unconditional service obligations		641		7,625		5,932
Total	$	27,431	$	36,596	$	37,318