XML 19 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Commitments And Contingencies
 3 Months Ended
May 04, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
Commitments and Contingencies

The Company leases property and equipment under non-cancelable operating leases. Certain retail store lease agreements provide for contingent rental payments if the store’s net sales exceed stated levels (percentage rents) and/or contain escalation clauses, which provide for increases in base rental for increases in future operating costs. Many of the Company’s leases provide for one or more renewal options for periods ranging from five to seven years. The Company’s operating lease agreements, including assumed extensions which are generally those that take the lease to a ten-year term, expire through 2023.

The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of May 4, 2013, are as follows (in thousands):
 
 
Retail
stores
 
Corporate
office and
distribution
centers
 
Total
Fiscal year:
 
 
 
 
 
Remaining 2013
$
30,367

 
$
2,330

 
$
32,697

2014
42,991

 
4,413

 
47,404

2015
42,287

 
4,678

 
46,965

2016
41,340

 
3,097

 
44,437

2017
40,912

 
2,610

 
43,522

Thereafter
153,485

 
13,031

 
166,516

 
$
351,382

 
$
30,159

 
$
381,541

 
Rent expense, including base and contingent rent under operating leases, was $9.5 million and $6.9 million for the thirteen weeks ended May 4, 2013 and April 28, 2012, respectively. Contingent rents were $0.1 million and $0.1 million for the thirteen weeks ended May 4, 2013 and April 28, 2012, respectively.

The Company has employment agreements with certain key employees that provide for, among other things, salary, bonus, severance, and change-in-control provisions. The severance and change of control provisions under these agreements provide for additional payments upon employee separation of up to approximately $4.1 million.

From time to time, the Company is involved in certain legal actions arising in the ordinary course of business. In management’s opinion, the outcome of such actions will not have a material adverse effect on the Company’s financial condition or results of operations.

As of May 4, 2013, the Company has other purchase commitments of approximately $0.9 million consisting of purchase agreements for materials that will be used in the construction of new stores.