Commitments and Contingencies

12 Months Ended

Jan. 28, 2017

(9) Commitments and Contingencies

The Company leases its stores under operating leases, which generally have an initial term of five years with renewal options. Future minimum rent payments under operating leases having noncancellable lease terms as of January 30, 2016 are as follows (in thousands):


Fiscal Year:
2017	$	42,751
2018		37,196
2019		30,626
2020		21,596
2021		10,900
Thereafter		4,428
Total future minimum lease payments	$	147,497

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales. Rent expense was $50.7 million, $47.1 million and $44.4 million in fiscal 2016, 2015 and 2014 (including $0.4 million, $0.5 million and $0.6 million of contingent rent), respectively.

On August 12, 2011, the Company received a letter of determination from the U.S. Equal Employment Opportunity Commission (the “EEOC”) commencing a conciliation process regarding alleged discrimination against males by the Company in its hiring and promotion practices during the years 2004 through 2006. The Company undertook its own internal analysis of the EEOC’s claims and defenses to such claims and had discussions with the EEOC in that regard. On January 9, 2017, the Company entered into a conciliation agreement (the “Conciliation Agreement”) with the EEOC and the charging party to settle these claims. Pursuant to the Conciliation Agreement, without admitting any violations or liability, the Company agreed to pay a total of $1.0 million to cover all claims. Such settlement costs were accrued in fiscal years prior to 2016. The Company also agreed to comply with certain training requirements and to make certain reports to the EEOC for a period of two years, with the expenses incurred in connection with such undertakings to be paid by the Company.

The Company from time to time is also involved in various other legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any other legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity.