XML 27 R13.htm IDEA: XBRL DOCUMENT v3.19.1
Commitments and Contingencies
12 Months Ended
Feb. 02, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
We have operating lease agreements for retail space, restaurants, warehouses and sales and administrative offices as well as equipment with varying terms. Total rent expense, which includes minimum rents, sales tax, real estate taxes, insurance and other operating expenses and contingent rents incurred under all leases was $95.9 million, $92.1 million and $87.8 million in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. Most of our leases provide for payments of real estate taxes, sales taxes, insurance or other operating expenses applicable to the property and most of our retail and restaurant leases also provide for contingent rent based on sales. Payments for real estate taxes, sales tax, insurance, other operating expenses and contingent percentage rent are included in rent expense above, but are generally not included in the aggregate minimum rental commitments below, as, in many cases, the amounts payable in future periods are not quantified in the lease agreement or may be dependent on future events. The total amount of such charges included in total rent expense above were $28.4 million, $24.8 million and $23.9 million in Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively, which includes $1.9 million, $1.6 million and $1.1 million of contingent percentage rent during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively.
As of February 2, 2019, the aggregate minimum base rental commitments for all non-cancelable operating real property leases with original terms in excess of one year are $68.4 million, $65.5 million, $62.4 million, $59.4 million, and $50.5 million for each of the next five years and $123.8 million thereafter.
As of February 2, 2019, we are also obligated under certain apparel license and design agreements to make future minimum royalty and advertising payments of $5.6 million, $5.6 million, $3.6 million, $0.0 million, and $0.0 million for each of the next five years and none thereafter. These amounts do not include amounts, if any, that exceed the minimums required pursuant to the agreements.
During the 1990s, we discovered the presence of hazardous waste on one of our properties. We believe that remedial or other activities may be required, including continued investigation and monitoring of groundwater and soil, although the timing and extent of such activities is uncertain. As of February 2, 2019 and February 3, 2018, the reserve for the remediation of this site was $0.4 million and $0.5 million, respectively, which is included in other non-current liabilities in our consolidated balance sheets. The amount recorded represents our estimate of the costs, on an undiscounted basis, to clean up and monitor the site as well as any associated legal and consulting fees, based on currently available information. This estimate may change in future periods as more information on the activities required and timing of those activities become known.
In Fiscal 2016, we recognized a charge of $1.3 million related to an assertion of underpaid customs duties concerning the method used to determine the dutiable value of certain inventory. We appealed this assessment in accordance with the standard procedures of the relevant customs authorities. We obtained a favorable ruling on appeal resulting in the Fiscal 2018 reversal for all amounts previously accrued related to the assertion. The liability included in our consolidated balance sheet related to this assertion of underpaid customs duties was $0.0 million and $1.9 million as of February 2, 2019 and February 3, 2018, respectively.

In connection with our Fiscal 2017 acquisition of TBBC, as disclosed in Note 12, we entered into a contingent consideration agreement which requires us to make cash payments to the sellers of up to $3.5 million in the aggregate subject to TBBC's achievement of certain earnings targets over a four year period subsequent to the acquisition. As of February 2, 2019, $0.3 million has been earned and is payable in Fiscal 2019 pursuant to this contingent consideration agreement. One of the sellers of TBBC is an employee and continues to manage the operations of TBBC.