13.      Commitments and contingencies

Operating leases 

The Company leases office equipment, software and office space under various non-cancellable operating leases. Minimum future payments under non-cancellable operating lease agreements are as follows:

Operating lease expense for the periods ended December 29, 2013, December 30, 2012 and January 1, 2012 was $2,330, $1,869 and $1,318, respectively.

Certain of the Company’s facility leases include renewal options and normal escalation clauses. Renewal options are included in the lease term if reasonably assured. Escalation clauses are accounted for on a straight-line basis over the lease term.

Purchase Obligations  

Purchase obligations not recorded on the balance sheet as at December 29, 2013 consist of insurance installments of $254 to be paid during calendar year 2014. Purchase obligations not recorded on the balance sheet as at December 30, 2012 consist of insurance installments of $300 paid during calendar year 2013. As at January 1, 2012, purchase obligations not recorded on the balance sheet consist of insurance installments of $164 that were paid during calendar year 2011, and commitments for machinery and equipment of $886.

Contingencies 

In the normal course of business, the Company may be subject to litigation and claims from customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts, where required. Although it is not possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of such contingencies would not have a material adverse effect on the financial position, results of operations and cash flows of the Company.