COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE G — COMMITMENTS AND CONTINGENCIES

   Lease Agreements

The Company leases warehousing, executive and sales facilities, retail stores, equipment and vehicles under operating leases with options to renew at varying terms. Leases with provisions for increasing rents have been accounted for on a straight-line basis over the life of the lease.

Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets and the corresponding rent expense on the Consolidated Statements of Income and Comprehensive Income when management determines that achieving the specified levels during the fiscal year is probable.

The following schedule sets forth the future minimum rental payments for operating leases having non-cancelable lease periods in excess of one year at January 31, 2016:

Year Ending January 31,	Amount
	(In thousands)
2017	$	70,004
2018		63,821
2019		57,467
2020		53,051
2021		51,657
Thereafter		152,172
	$	448,172

Rent expense on the above operating leases for the years ended January 31, 2016, 2015 and 2014 was approximately $75.6 million, $72.6 million and $48.3 million, respectively.

 

   License Agreements

The Company has entered into license agreements that provide for royalty payments ranging from 4% to 19% of net sales of licensed products. The Company incurred royalty expense (included in cost of goods sold) of approximately $123.7 million, $109.6 million and $101.5 million for the years ended January 31, 2016, 2015 and 2014, respectively. Contractual advertising expense, which is normally based on a percentage of net sales associated with certain license agreements (included in selling, general and administrative expense), was $36.1 million, $32.1 million and $30.0 million for the years ended January 31, 2016, 2015 and 2014, respectively. Based on minimum net sales requirements, future minimum royalty and advertising payments required under these agreements are:

Year Ending January 31,	Amount
	(In thousands)
2017	$	115,519
2018		94,652
2019		86,748
2020		79,926
2021		75,825
Thereafter		190,082
	$	642,752

 

 Legal Proceedings

In the ordinary course of business, the Company is subject to periodic claims, investigations and lawsuits. Although the Company cannot predict with certainty the ultimate resolution of claims, investigations and lawsuits, asserted against G-III, the Company does not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on its business, financial condition or results of operations.