Commitments and Contingencies

12 Months Ended

Jan. 28, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments

Leases

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 payments for increases in future operating costs. Many of the Company’s leases provide for one or more renewal options for periods of five years. As of January 28, 2017, the Company’s operating lease agreements, including assumed extensions, which are generally those that take the lease to a ten-year term, expire through fiscal 2031.

The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of January 28, 2017, are as follows (in thousands):



Fiscal Year	Retail stores		Corporate office and distribution centers		Total
2017	$	89,944	$	6,651	$	96,595
2018	92,768		9,507		102,275
2019	91,852		10,742		102,594
2020	88,881		11,348		100,229
2021	82,485		11,547		94,032
Thereafter	260,081		57,485		317,566
	$	706,011	$	107,280	$	813,291

Rent expense, including base and contingent rent under operating leases, was $78.5 million, $66.0 million and $53.6 million in fiscal 2016, fiscal 2015 and fiscal 2014, respectively. Contingent rents were $0.5 million, $0.6 million and $0.5 million in fiscal 2016, fiscal 2015 and fiscal 2014, respectively.

From January 29, 2017 to March 23, 2017, the Company committed to 17 new store leases with terms of 10 to 15 years that have future minimum lease payments of approximately $34.6 million.

Other contractual commitments

The Company has an executive severance plan that is applicable to 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 $6.5 million.

As of January 28, 2017, the Company has other purchase commitments of approximately $4.6 million consisting of purchase agreements for materials that will be used in the construction of new stores.

Contingencies

Legal Matters

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.