Contractual Obligations and Commercial Commitments  Our contractual obligations and commercial commitments include future minimum obligations under operating leases and purchase  obligations. Our purchase obligations primarily consist of purchase orders for merchandise inventory. The future minimum payments for these  obligations as of December 28, 2013 for periods subsequent to this date are as follows:  Payments due by Fiscal Period as of December 28, 2013 (In thousands) Total 2014 2015 2016 2017 2018 Beyond Operating lease obligations $ 200,769  $ 43,551  $ 37,617  $ 28,809  $ 21,573  $ 15,889  $ 53,330  Purchase obligations  31,032  31,032  -  -  -  -  -  Total  $ 231,801  $ 74,583  $ 37,617  $ 28,809  $ 21,573  $ 15,889  $ 53,330  Inventory  Inflation  Our total liability for uncertain tax positions under the Financial  Accounting Standards Board Accounting Standards Codification  (ASC) section 740-10-25 was $0.2 million as of December 28, 2013.  During the next fiscal year, unrecognized tax benefits are expected  to remain unchanged. At this time, we do not expect a significant  payment related to these obligations within the next year. See Note 8 -  Income Taxes to the Consolidated Financial Statements for additional  information.  Inventory is stated at the lower of cost or market, with cost  determined on an average cost basis. Historically, we have not  conducted sales whereby we offer products below cost and,  accordingly, have no significant lower of cost or market reserve  recorded.  Throughout the year we record an estimated cost of shortage  based on past experience. The amount accrued for shortage each  period is based on detailed historical averages. The accrual rate  remained unchanged for fiscal 2013, 2012 and 2011. Periodic physical  inventories are taken and any difference between the actual physical  count of merchandise and the recorded amount in our records are  adjusted and recorded as shortage. Historically, including fiscal years  2013, 2012 and 2011, the timing of the physical inventory has been  in the fourth quarter so that no material amount of shortage was  required to be estimated on activity between the date of the physical  count and year-end. However, future physical counts of merchandise  may not be at times at or near the end of a fiscal quarter or fiscal  year-end, and our estimate of shortage for the intervening period  may be material based on the amount of time between the date of the  physical inventory and the date of the fiscal quarter or year-end.  We do not believe that inflation has had a material adverse impact on  our business or operating results during the periods presented. We  cannot assure you, however, that our business will not be affected by  inflation in the future.  The preparation of financial statements in conformity with generally  accepted accounting principles requires the appropriate application  of certain accounting policies, which require us to make estimates  and assumptions about future events and their impact on amounts  reported in our financial statements and related notes. Since future  events and their impact cannot be determined with certainty,  the actual results will inevitably differ from our estimates. Such  differences could be material to the financial statements.  We believe application of accounting policies, and the estimates  inherently required therein, are reasonable. These accounting  policies and estimates are periodically reevaluated, and adjustments  are made when facts and circumstances dictate a change.  Historically, we have found our application of accounting policies to  be appropriate, and actual results have not differed materially from  those determined using necessary estimates.  Our accounting policies are more fully described in Note 2 to our  Consolidated Financial Statements, which appear elsewhere in this  Annual Report on Form 10-K. We have identified the following critical  accounting estimates:  In accordance with ASC section 360-10-35 we assess the potential  impairment of long-lived assets annually or when events or changes  in circumstances indicate that the carrying value may not be  recoverable. Recoverability is measured by comparing the carrying  amount of an asset, or asset group, to expected future net cash flows  generated by the asset, or asset group. If the carrying amount exceeds  its estimated undiscounted future cash flows, the carrying amount  is compared to its fair value and an impairment charge is recognized  to the extent of the difference. For purposes of evaluating store  assets for impairment, we have determined that each store location  is an asset group. As of December 28, 2013, store assets represented  approximately $47.1 million, or approximately 67% of total property,  plant and equipment, net. Factors that we consider important which  could individually or in combination trigger an impairment review 2013 FORM 10-K 26  BUILD-A-BEAR WORKSHOP, INC.  Long-Lived Assets  Critical Accounting Estimates 