COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 28, 2013

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 10. COMMITMENTS AND CONTINGENCIES

Leases

        At December 28, 2013, the Company was obligated under operating leases for the corporate office, as well as another location that houses our design, production and customer service departments and various store locations expiring at various times through 2028. The terms of the leases generally provide for the payment of minimum annual rentals, contingent rentals based on a percentage of sales in excess of a stipulated amount, and a portion of promotional funds, common area maintenance and heating, ventilation and air conditioning charges. Most leases contain leasehold improvement reimbursements from landlords and/or rent holidays. In recognizing landlord incentives and minimum rent expenses, the Company amortizes the charges and incentives on a straight line basis over the lease term. Store rental expense related to these leases, included in cost of sales, consisted of the following:

	52 Weeks Ended		52 Weeks Ended		52 Weeks Ended
	December 28, 2013		December 29, 2012		December 31, 2011
Net minimum rentals	$	23,453,000	$	22,918,000	$	22,951,000
Other occupancy costs including contingent rentals		11,269,000		11,155,000		10,700,000
	$	34,722,000	$	34,073,000	$	33,651,000

        Rent expense for our New York City offices amounted to approximately $1.5 million for 2013 and approximately $1.2 million for fiscal 2012, and $1.0 million for fiscal 2011.

        Future minimum payments under non-cancelable operating leases consisted of the following at December 28, 2013:

Fiscal year ending:
2014	$	24,625,000
2015		21,084,000
2016		17,066,000
2017		11,893,000
2018		9,161,000
Thereafter		29,176,000
Total future minimum lease payments	$	113,005,000

        The operating leases included in the table above do not include contingent rent based upon sales volume, which represented less than 1% of net minimum rent expense in fiscal 2013, or other occupancy costs such as promotional funds, common area maintenance and heating, ventilation and air conditioning charges, which represented approximately 47.6% of net minimum rent expense in fiscal 2013.

Other Commitments

        The following tables summarize our other commitments as of December 28, 2013:

	Total		2014		2015		2016
	(in thousands)
Other Obligations
Employment Contract	$	1,887	$	900	$	900	$	87
Purchase Obligations		24,107		24,107		—		—
Letters of Credit		1,117		1,117		—		—
Total	$	27,111	$	26,124	$	900	$	87

        We issue letters of credit primarily for the importation of merchandise inventories and as security deposits for our corporate office. The Company does not have any off-balance sheet financing arrangements.