Commitments and Contingencies

9 Months Ended

May 02, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.Commitments and Contingencies

In April 2014, the Company was served with a claim filed as a collective action alleging violations of the Fair Labor Standards Act.  The Company believes this claim is without merit and intends to vigorously defend this lawsuit.  This claim was recently served on the Company and the proceedings remain in the early stages.  At this time, the Company cannot reasonably estimate the likely results of the lawsuit or the economic effects of the litigation on the Company, though an adverse outcome could be material to the Company’s results of operations or financial position.  See “Item 1. Legal Proceedings” of Part II of this Quarterly Report on Form 10-Q for further information related to this claim.

The Company and its subsidiaries are party to various legal and regulatory proceedings and claims incidental to their business in the ordinary course.  In the opinion of management, based upon information currently available, the ultimate liability with respect to these proceedings and claims will not materially affect the Company’s consolidated results of operations or financial position.

Related to its workers’ compensation insurance coverage, the Company is contingently liable pursuant to standby letters of credit as credit guarantees to certain insurers.  As of May 2, 2014, the Company had $20,637 of standby letters of credit related to securing reserved claims under workers’ compensation insurance.  All standby letters of credit are renewable annually and reduce the Company’s borrowing availability under its Revolving Credit Facility (see Note 4).

At May 2, 2014, the Company is secondarily liable for lease payments associated with two properties.  The Company is not aware of any non-performance under these lease arrangements that would result in the Company having to perform in accordance with the terms of those guarantees; and therefore, no provision has been recorded in the Condensed Consolidated Balance Sheets for amounts to be paid in case of non-performance by the primary obligors under such lease arrangements.

The Company enters into certain indemnification agreements in favor of third parties in the ordinary course of business.  At May 2, 2014, the Company recorded a liability of $313 in the Condensed Consolidated Balance Sheet related to legal costs.  The Company believes that the probability of incurring an actual liability under other indemnification agreements is sufficiently remote so that no additional liability has been recorded in the Condensed Consolidated Balance Sheets.