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Commitments and Contingencies
12 Months Ended
Feb. 01, 2020
Commitments and Contingencies  
Commitments and Contingencies

Note 7. Commitments and Contingencies

As of February 1, 2020, we are also obligated under certain apparel license and design agreements to make future minimum royalty and advertising payments of $6 million, $4 million, $0 million, $0 million, and $0 million for each of the next five years and $0 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 both February 1, 2020 and February 2, 2019, the reserve for the remediation of this site was less than $1 million, 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 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.

In connection with our Fiscal 2017 acquisition of TBBC, we entered into a contingent consideration agreement which requires us to make cash payments to the sellers of up to $4 million in the aggregate subject to TBBC’s achievement of certain earnings targets over a four year period subsequent to the acquisition. Pursuant to this contingent consideration agreement, as of February 1, 2020, less than $1 million was earned related to Fiscal 2018 and paid in Fiscal 2019, less than $1 million was earned related to Fiscal 2019 and is payable in Fiscal 2020. One of the sellers of TBBC is an employee and continues to manage the operations of TBBC.